I run a small independent grocery store and I have allowed a few of my elderly customers to keep a running tab. They have always been really good about paying me before. However one of my customers just keeps saying they will pay next time but they never do. Their tab is getting too high. I don’t want to take them to court if I can avoid it but how do I let them know that this has to stop?
Lawyer Answers (1): Answers from lawyers are general preliminary responses. They are not formal legal advice and cannot taken account of all your circumstances. They do not create a lawyer–client relationship.
Answer by Robert Bailey, Adelaide 5000 SA
- Potential disputes can often be avoided and good customer relations maintained by adopting a flexible and realistic approach. This may involve negotiating:
- a payment plan with instalments over time;
- to delay payment until an agreed date;
- payment of a reduced amount in full satisfaction of the debt; or
- some other agreed arrangement.
- When communicating about compromises use ‘without prejudice’ in your heading. This allows you to offer discounts or other concessions in an attempt to settle the matter but still claim the full amount owed if the situation gets worse and you end up in court. Also specify a reasonable time in which they have to reply to your letter such as 14 days.
- If you reach an agreement establish clear payment deadlines and stick to them. Have a follow up reminder letter ready to go in case a payment is missed.
- All communication you have in relation to your debt matter may end up as part of the evidence in your court case. It is a good idea to make sure all your documents are accurate and clearly worded. This applies to all letters, demands and requests for payment and any other correspondence between you and the debtor.
- A lawyer can help you draft the necessary correspondence if you are not good with words.
- Make notes and keep a record of all relevant communications including phone calls and copies of all letters sent.