Dealing with problem customers.

[HDD Spaz]

Hey Guys,

Recently I have been dealing with more and more customers who are refusing to pay the agreed fees after I have completed the job. All customers have given verbal and written (email) confirmation that they agree to the recovery costs if all the required data is recovered. Maybe it's the time of year or the current financial climate but some customers are changing their minds after I have spent my own money on parts and performed head and platter swaps. Maybe I should start obtaining credit card numbers before I commence any work.

I was wondering if anyone else has this problem and what I am able to do to get the funds off the client.

I also want to know whats the best course of action to take when dealing with these robbing pricks?

Also where do I stand if I threaten to disclose all of thier data on the internet if payment is not recieved?

[harddrivespecialist]

Also where do I stand if I threaten to disclose all of thier data on the internet if payment is not recieved?

This is a last thing you want to do. You could be held liable for that, and it will cost you much more then recovery cost.

I believe you should be safe enough to keep the drive with data until you get paid.
All other approaches will be either too expensive or take a lot of your time.

This happens all the time and you have to be ready for that.

You can implement deposits towards part costs, usualy works pretty good.
At least, you not at financial lost, just your time.

[scratchy]

We had a big problem with this, and we resolved it ..

We make sure all customers sign a form asking us to perform the recovery work and that they accept the quote value.

We ask them before we start the work 'what is the critical data?' If they say 'everything', or leave this part of the form blank, then anything we can get back = 'everything' so out of fairness, we encourage them to remember what they need back and tell us what it is.

The form they fill in and sign is proof that they requested the work and agreed to the price. you will need to add a sentence stating that they will be charged when the critical data is recovered - ours reads, 'you will only be charged when we know your critical data is recoverable'. This does not sound too 'heavy handed'.

if we get a job without a form or it isnt signed, then we ask them to fax a copy to us and email a confirmation, or post one. We dont start work on a drive without the form. It's just not worth the hassle.

Once they have signed and dated the form, this becomes a 'contract' in law (at least in the UK).

Best course of action to get paid when the customer backs out is; if you have documentary evidence that they have

a) asked you to do the job and
b) you have done it

Invoice them - this is important !! as when they dont pay up they can say, 'I havent even had an invoice!', Then when they dont pay you can either get a debt collection agency invloved, or go to the local small claims court. A debt collection agency would be best at first as you may get some free advice .. For example, if there is not enough paperwork, contracts, etc then they may not take the job on. Most will charge only on receipt of payment and costs will vary on the invoice amount but typically are 10 - 25 percent of invoice value. Find out Debt Collection companies that friends, aquantances, local companies use or contact your bank local business advisor, accountant. BTW even if the percentage is high (25 percent) you still get 75 percent which is better than what you had - and the debt collection company do all the running around - some will even represent you in a small claims court and they know the law better than I do so they are worth it in the long run.

if you post their data on the internet, it WILL backfire on you.

1) It is probably illegal to do this.
2) When they tell everyone you have done this, your reputation will be lost.

We found the biggest culprits were IT companies that were acting on behalf of their clients. When their clients find out how much it was, they back out. We always make sure that these companies understand they are our customer - and THEIR customer is THEIR responisibility to get paid - not ours ... So they need to have a similar agreement with their customer or at least let them know the costs invloved in the recovery.

[gizzy]

I always get a credit card number and charge it as soon as I know for sure it is recoverable. If they approve the price they should have no problem giving you a credit card number, if they don't then they are not serious and don't want to commit to it.

[HDD Spaz]

I was joking about posting the info on the net.

I am sure an email is sufficient written confirmation. I will now ask for credit cards details upfront. It seems the best way to proceed.

[tiktaq]

I was joking about posting the info on the net.

I am sure an email is sufficient written confirmation. I will now ask for credit cards details upfront. It seems the best way to proceed.

Wont this surely affect the volume of approved work? No customer will prefer to pay upfront

[Kaiser]

Tricky ground, before doing any work id get payment first, but then again most people are going to be put off by the risks aswell.