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[+] Here's my rant - Loretta Reed/MD (7 replies)
10/13/2005 11:05:00 AM (3017 views)

[+] Refaxing - Danielle Nelson/WI (8 replies)
10/12/2005 2:14:31 PM (3055 views)

[-] Rant! - Tammy Knight/MO (16 replies)
10/12/2005 12:49:24 AM (2982 views)
Re: Rant! - Kurt deVries/FL
10/12/2005 2:02:22 PM (4858 views)
Re: Rant! - Robert Franco/OH
10/12/2005 3:11:23 PM (4805 views)

Excellent topic for discussion...  It is unfortunate that abstractors do not have an efficient course of action when clients fail to make payments.   There are several options, but they all have some level of difficulty or risk associated with them.

LEGAL ACTION - As Kevin Ahern has pointed out, the law provides for remedies in such cases.  However, the legal fees associated often make the use of the court system cost prohibitive.  Even if you win, you are still in a position of having to expend further efforts collecting on a judgment.

COLLECTION AGENCIES - This often is unsatisfying because even if the collection agency is successful, they are going to take a large portion of the amount collected.  Sometimes, collection agencies offer services with up-front fees that could be wasted if payment is not obtained.

RANSOM - Some abstractors have held work hostage for payment of delinquent accounts.  This can be risky.  In the case where the abstractor holds a filing, if an intervening lien is filed while the abstractor is holding the documents I would imagine that there would be some liability involved.  This also affects the borrower, or homeowner, and not just the client.  I never recommend holding filings - either file them or return them to the client immediately.  Holding new search orders is not as risky in this regard, as long as you let the client know that you are not completing the order until their account is paid, however, they are likely to cancel the order and place it elsewhere; which is ineffective in trying to collect a delinquent account.

PUBLIC POSTING OF NON-PAYMENT - This is what has been referred to in the previous post by Tammy.  It costs the abstractor nothing, and could hurt the non-paying client by making it difficult for them to find other abstractors willing to take the same risks.  It seems to have been effective, as we have seen on this forum.  However, one of these days it could spawn a lawsuit by the client for libel.  Source of Title has been threatened with lawsuits in the past for not removing these posts and I cringe every time I see one.  However, this is a public forum and Source of Title disclaims any liability for the content of the posts.  The forums are not censored and the person posting the information accepts full liability for the content.  Still, I do not encourage this type of posting. 

BLACK-LISTING - Creating lists of "dead-beat" clients has been suggested many times on this forum.  It would serve the purpose of letting other clients know what clients have a reputation of not paying their abstractors, however, there is no good way to verify the information.  We have all had clients that we have had good experiences with that others complain about, and vice versa.  Even more so than a single posting on the forum, this type of behavior could result in a lawsuit. I certainly would not be willing to participate in such a list.

Unfortunately, there is no good way to collect from a client that is just not willing to step-up and pay for the work they order.  Due to the nature of the business, abstractors are in a very weak bargaining position.  There are always going to be other abstractors willing to take on new business and accept the risk of not being paid.

Cut clients off early, before they owe too much.  Don't do any more work for them and consider it a learning experience.  If it is truly a large balance, it may be worth pursuing legal action.

I wish I had better advice... if anyone else does, please share it.

Best,
Robert A. Franco
SOURCE OF TITLE

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Re: Rant! - Scott Perry/PA
10/12/2005 6:03:33 PM (4748 views)
Re: Rant! - Kevin Ahern/CT
10/12/2005 5:06:42 PM (4795 views)
Re: Rant! - LAWANDA MCMILLIAN/AR
10/12/2005 8:21:41 PM (4752 views)
Re: Rant! - Scott Perry/PA
10/12/2005 10:02:17 PM (4791 views)
Re: Rant! - Robert Franco/OH
10/13/2005 12:26:35 AM (4779 views)
Re: Rant! - Tammy Knight/MO
10/13/2005 1:22:50 AM (4759 views)
Re: Rant! - Lisa Ramsey/TX
10/14/2005 10:02:18 AM (4806 views)
Re: Rant! - Kevin Ahern/CT
10/14/2005 12:29:44 PM (4742 views)
Re: Rant! - Kevin Ahern/CT
10/14/2005 12:48:29 PM (4751 views)
Re: Rant! - Kevin Ahern/CT
10/13/2005 4:56:56 AM (4688 views)
Re: Rant! - Iris Buchman/FL
10/13/2005 4:44:01 PM (4706 views)
Re: Rant! - Kevin Ahern/CT
10/14/2005 8:06:47 AM (4674 views)
Re: Rant! - Tammy Knight/MO
10/16/2005 10:08:48 PM (4739 views)
Re: Rant! - Kevin Ahern/CT
10/17/2005 8:21:44 AM (5109 views)

[+] Erevna? - Tammy Knight/MO (2 replies)
10/12/2005 12:28:49 AM (3079 views)

[+] United Document Services of East Northport - JENNIFER HOLZMAN/PA (1 reply)
10/11/2005 1:24:41 PM (2972 views)




Abstractor Educational Workshops!!! - Jay Duncan/MO
10/7/2005 8:06:03 AM (3564 views)

[+] Are you going to vote? - Jay Duncan/MO (1 reply)
10/7/2005 8:03:07 AM (2685 views)

[+] WORKING CONDITIONS - Scott Perry/PA (34 replies)
10/6/2005 11:33:25 PM (2930 views)

[+] ATA - Iris Buchman/FL (5 replies)
10/6/2005 1:17:26 AM (2910 views)

[+] Be Clear with your Client - Wanda Steudel/OH (8 replies)
10/5/2005 5:13:39 PM (2716 views)

2005 Independent Examiner Report Weekend Interviews - Jarrod Clabaugh/OH
10/4/2005 11:12:02 AM (2328 views)

[+] PLAT MAPS? - Rebecca Barney/FL (14 replies)
10/4/2005 9:24:49 AM (2893 views)

Hello - Ricky Farrow/FL
10/3/2005 7:30:38 PM (2325 views)

[+] Resolution to India Call - Jason Sheppard/PA (1 reply)
10/3/2005 11:55:48 AM (2735 views)

[+] First Title & Escrow (Info) ??? - george Hubka/MI (14 replies)
10/3/2005 8:10:57 AM (2915 views)


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