Taking a customer to small claims court

[degenerationx]

Hi,

Im hoping this is the right platform to ask this question.

I've been running an Opticians business for the past year. We have 2 customers whom owe us money. One is for £50.00. The other is for £100.00. I've sent final payment letters but they still haven't paid us.

One customer really irks me as they should have paid the balance on collection of their glasses but left without paying.

If I were to take this customer to small claims court, is anyone aware of the cost? Would we be able to get our court costs re-imbursed? If the customer is found to owe us money then are they then liable for the court costs?

Any advice would be appreciated. I've tried ringing citizens advice at least on 10 separate occasions but they are always busy.

 

[GRDCredit]

Court fee for debts of that level through MCOL is £25.

Your time etc is a whole different matter! Debtor will be liable for costs - why do you say 'if' the customer is found to owe money? Is there any doubt in your mind?

 

[degenerationx]

They both definitely do owe us money. I shouldn't have worded it like that. Is going through MCOL likely to get a positive outcome and at a speedy rate?

 

[paulears]

If you have the evidence then the court are likely to find in your favour, and the other parties may not even turn up. However - for the amounts owing, is it really worth it in terms of the agro, stress and time? For £150 I'd not consider it a good use of my time?

 

[GRDCredit]

Is going through MCOL likely to get a positive outcome and at a speedy rate?

Define positive. Based on what you say you could get a CCJ quite quickly. This does not mean you get paid however and that can be a long drawn out process

 

[smallclaimsassistance]

I think it's worth doing, even for those sums, in fact especially for those sums. My guess is that as soon as they receive probably the summons, and certainly the judgement, they will pay. You will get back the court fee, and you'll also get interest at 8%, although I admit that's not going to amount to much. Court fees arehere, and the Money Claims Online link ishere.

The question as to whether it is a worthwhile use of your time to chase bad debts is an issue for you, but my view has always been that people should not be allowed to get away with such behaviour, which is one of the reasons why I now do what I do.

The choice is yours, but I wouldn't let this go. People talk, and in time others will know that they got away with not paying you, which could result in this happening again.

Best of luck

Dean

 

[Mkcoy]

You could always sell it off to a debt collection agency?

 

[degenerationx]

Thanks Dean for your advice. I just get angry that some people seem to feel they can get away with it. It's not even about the money but more about the principle of non payment.

As for the question of my time, I'd rather be using it more productively but like I said it really annoys me that customers don't pay up!!

 

[smallclaimsassistance]

I know exactly what you mean. I'm sure most businesses see this kind of behaviour.

If I were you I would look on this as an investment. These look to be straight forward non-payment-on-receipt-of-goods cases. If you knocked one Claim Form up, you could use it for every other similar default, just changing the numbers and name/address, including both of these cases.

Then whenever anyone tries this again, with just a few clicks you're up and running.

 

[14Steve14]

I also think that you should do something. Its alright some people saying that its not in your interests to try to recover small amounts in court, but if 10 people don't pay 50 quid, then its a lot of money.

At the end on the day you are only trying to get back what should be yours. Before you try the court route, why not pluck up the courage and do a bit of detective work, then knock on their door and ask for it to be paid. If they slam the door in your face, add that to your claim form. It will make someone reading it think differently. In a face to face confrontation must people would pay. Just take someone with you in case it all kicks off, but what ever you do, do not get into a slanging match, just walk away and fill out the court forms.

 

[The Sheriffs Office]

It is a tricky one with sums so low.

Believe it or not we have the same issues with small client facing fees too.

However, we take a zero tolerance approach and issue on anything over £75. The way I see it, the affect on their credit rating is far more hassle than just paying the £75. Most of the time we get paid straight away and if not then a few months later when they suddenly need to rent, get a mortgage, loan or store/credit card.

 

[smallclaimsassistance]

It is a tricky one with sums so low.

Believe it or not we have the same issues with small client facing fees too.

However, we take a zero tolerance approach and issue on anything over £75.

Totally agree. Anything up to that figure, and a suitably worded letter of claim should do the trick.

 

[Mayor]

Personally, I would write it off as a learning curve, and move on. I have been in Independent practice for a fair while, and for a long time have insisted on full payment with the order. We have been bumped a few times for GOS stuff, but no longer have piles of uncollected glasses. Might be nice to drop them a line telling them that you have sold their debt to a local outlaw motorcycle club who have been known to make home visits too....