Collections agency for small amounts?

4 pointsPonyGumbo2 comments

I occasionally have clients who disappear owing small amounts (usually less than $100). To this point I've just let it go, but lately there have been some particularly egregious cases that I'd like to turn over to collections. Does anyone have experience with this?

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Less than $100 is too small for a collections agency to bother with, unless you've got a big pile of such clients.

I'd suggest charging dodgy clients in advance, or better yet, not doing business with them in the first place. Over the years, you'll get better at detecting the "vibe" of the non-paying client.

http://online.wsj.com/article/SB1000142405270230451070457556...

I don't have any personal experience that I can offer, but I recalled reading this article a few months ago and it might be of help.

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