Short of taking them to court, there really isn't much you can do with a non-payer.  This is probably the biggest problem facing abstractors (judging from the comments on our forums the past couple of years).  Much like Rodney Dangerfield, abstractors "get no respect, no respect, I tell ya."

This seems to have evolved over many years.  When I started, we got paid the full amount we invoiced every month, with no problems.  Then, some companies started paying late.  Then some just stopped.  It seemed that some people learned that abstractors weren't very good business-people and they wouldn't do anything about it.  The fact that the individual invoices are relatively small and business was routinely conducted across state lines further complicated things.

Everyone now silently acknowledges that these small amounts just aren't worth trying to collect through proper legal means. And, there are a lot of abstractors out there willing to do the work.  It makes it relatively simple to default on obligations and move on to another abstractor when it becomes a problem.

There are two ways that this problem could be solved.  The first is through legislation; most likely licensing for abstractors that would include some means to assure that abstactors get paid.  It could be through the use of liens (similar to New Mexico).  The second is for abstractors to start enforcing their collection by actually suing non-payers.  This is obviously cost prohibitive when you consider each individual invoice, but in the long run it might prompt clients to pay up. 

There is a third way, but I don't recommend it.  Go to law school.  It seems to have helped me.  Since I can now file a lawsuit without the expense of hiring an attorney, I have been able to collect with a simple letter on my lawfirm stationary.  I haven't actually had to sue anyone yet, but I won't hesitate to do so if I have to. 

Best,
Robert A. Franco
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