Non-Paying Customer

I have a customer who is currently under a one-year contract for a software license, which expires on July 31, 2005. They are past due for the past 2 months. I contacted them by telephone today and they told me that since they aren't using the software, they shouldn't have to pay. I was firm and told them that they are under contract until the end of July. Besides contacting a lawyer, do you have recommendations for a course of action.

Also, regarding to their claim of non-use, the software is online (web-based) and I can see that they have accessed the system in the past 2 weeks.

 

If you're in the UK I have some advice, but I wont waste my fingers yet until I know it will help you!....where are you?

 

Oh sorry, I am in the US. In Massachusetts (if it matters).

The other thing I forgot to mention is that I have access to the domain name. It will obviously have no use to me, but I don't think I should turn it over to my (former) customer.

 

Hire a hitman and have the CEO of the company flogged with sardine-filled soggy stockings until he coughs up the dough.

 

I had this recently with a client of mine...

I took down the site I'd build for him and replaced it with a note saying that he hadn't paid me for 12 months.

I got a call from him threatning to sue me for slander and that His lawyer was going to serve me, however what he didn't know was that I'd already spoken with my breif who'd given me the go-ahead.

He paid up within 5 hours

 

There could be companies in the US that will take on the debt for a percentage of the debt. There are in the UK.

Debts I've had in the past I've passed it on and they take 4% only IF they get the money.

 

I actually thought of that, because my application does have a switch for me to turn on to block access. However, they are telling that they have no use for it anymore, so I don't expect them to try using it again.

I was thinking of sending them a firm letter from myself, addressing my concerns and mentioning that I would like to resolve the issue without getting involved in legalities. That might scare them enough just to pay off the rest of the contract term.

 

You might be thinking of a collections agency. I'm not sure if it's appropriate to contact one if it's only a couple hundred dollars of debt.

 

Just flick the switch mate - simple - no pay no play

edit - and do not leave it so long next time with any custmors as if they do not pay they arent going to renew there contract anyway

 

If you have access to the domain name, why not shut it down for a few days. I wouldn't recomend a site that says they are a nonpaying customer but maybe a page that says they are temporarily offline or something.

That is if it is legal for you to do it.

 

Legal or not, the bill is cheaper to pay then an attorney IMO.

I disabled a server once for an accountant with a law degree in front of his face and walked out the door. I had a check in a few hours.

I lost the client, but I didn't want their business at that point anyway anymore.