Why debtors pay us when they have ignored you

It is one of the most common stories we hear. A customer owes you money. They are friendly about it. They promise a payment by the end of the week. The payment does not arrive, and then the excuses start. Each one sounds reasonable on its own, so you wait again.

Months later you are still waiting, and you are starting to feel like the unreasonable one for asking.

Why a creditor is easy to put off

When you are owed money, you are usually trying to do two things at once: get paid, and keep a working relationship. You do not want to lose the customer or look heavy handed. A debtor who wants to delay paying can lean on that, whether they mean to or not.

If you have not chased a debt like this before, you have no way of knowing which excuses are genuine and which are just the next delay. So you give the benefit of the doubt, every time.

What changes when we are instructed

We have heard the excuses before. All of them. That is the whole of the difference, and it matters more than it sounds.

• There is no relationship to protect. The debtor is no longer dealing with someone they can keep sweet with a promise.
• An excuse is not a reason. A promise of payment is noted, given a date, and followed up when the date passes. It does not reset the conversation.
• Every contact is logged. What was said, when, and what was promised is on the record, so the same excuse cannot be used twice.
• The matter is visibly moving. The debtor can see the case is being taken further, step by step, rather than waiting for them to get round to it.

We will not be fobbed off, and we will not go away because of excuses.

Firm, but lawful

Firm is not the same as aggressive, and the law draws the line clearly. In England and Wales, section 40 of the Administration of Justice Act 1970 makes it a criminal offence, when trying to make someone pay a contract debt, to:

• harass them with demands that, by their frequency, manner or timing, or by any threat or publicity, are calculated to cause them or their family alarm, distress or humiliation;
• falsely claim that criminal proceedings lie for not paying;
• falsely claim to be acting in an official capacity; or
• use a document falsely presented as having an official character.

What you can do before you instruct anyone

If you are still chasing a debt yourself, three things will help, whatever happens next:

• Stop accepting open promises. Ask for an amount and a date, and confirm it in writing.
• Keep everything. Emails, texts and notes of calls all form part of the record.
• If the debtor admits the debt in writing, keep that message. A signed written acknowledgment can restart the time limit for recovering the debt, which we explain in how long you have to chase a debt.

And if the promises have been going on for months, they are unlikely to stop on their own.