Money owed by other company

[virginiacompany]

What is the name of your state? Virginia

Our company in Virginia has worked with a company based in California. our employee worked at a client site in Calfornia through this company. it has not paid for our consultants services from July2007 through Dec2007. now the employee has resigned but we are yet to be paid.

we have sent them legal notices but its not helping out. are there any ways to recover out money? can we approach the end client where our employee worked? is this going to help?

 

[Skapare]

What is the name of your state? Virginia

Our company in Virginia has worked with a company based in California. our employee worked at a client site in Calfornia through this company. it has not paid for our consultants services from July2007 through Dec2007. now the employee has resigned but we are yet to be paid.

we have sent them legal notices but its not helping out. are there any ways to recover out money? can we approach the end client where our employee worked? is this going to help?

This is what the debt collection process is all about. A debt collection agency may be able to get the money you can't get for yourself. You'd be paying the CA for their expertise in getting the money (probably worth it since it will likely take more of your own time to collect it). In the worst case you might have to sue (check your contracts).

 

[JETX]

we have sent them legal notices but its not helping out. are there any ways to recover out money?

Contrary to what the other 'poster' responded, the 'advice' to get a debt collector is useless. A debtor simply has to tell a debt collector to 'cease and desist' any further contact.

Your only real option if they refuse to pay is to pursue litigation.

can we approach the end client where our employee worked?

Depends, what EXACTLY does your contract say as to their payment and penalty for not paying and options to pursue??

 

[TigerD]

Contrary to what the other 'poster' responded, the 'advice' to get a debt collector is useless. A debtor simply has to tell a debt collector to 'cease and desist' any further contact.

Your only real option if they refuse to pay is to pursue litigation.


Depends, what EXACTLY does your contract say as to their payment and penalty for not paying and options to pursue??

While JETX's advice is correct for many consumer relations, I don't believe it is accurate for the following reasons:
1. Business collections are not subject to the FDCPA and while I am not a business collections expert, I don't believe there is an obligation to cease a desist collections on a business account.
2. Collectors are experienced in negotiations and dispute resolution. As such, they can be a valuable asset to businesses. A good collector can salvage a business relationship where a lawsuit pretty much terminates it forever.
3. Hiring a collection agency frees a business to do what it does to make money. It is usually counter productive for a business that sells widgets to chase a client owing money for widgets when they can get back to business selling widgets.

DC

 

[JETX]

While JETX's advice is correct for many consumer relations, I don't believe it is accurate for the following reasons:
1. Business collections are not subject to the FDCPA and while I am not a business collections expert, I don't believe there is an obligation to cease a desist collections on a business account.

You are correct. I was making multiple posts and got distracted... and then overlooked that this was clearly not a CONSUMER obligation.... meaning that the FDCPA and right to request a debt collector 'cease and desist' does not exist.

However, I believe I am still correct in that hiring a debt collector to pursue a business debt is very likely a waste of time and energy.
The OP needs to read his contract and then take the appropriate action (likely litigation).