Autobody shop owed deductible from customer (insurance, credit report, lawyer)

[GFlores]

If the shop released the vehicle to the customer without getting his deductible (customer responsibility portion), is there some kind of legal action that the shop can take once it has written proof that the customer is aware that he owes us money??

A mechanic's lien is out of the question since the vehicle was already released to the customer. We are having a difficult time getting him to pay. Any feedback is greatly appreciated.

Thanks.

[Marblecake]

When your company cannot collect business debts from a customer,
a lawyer can send a letter to the customer on law firm stationery demanding
payment and warning of legal action if the debt is not paid. Such a letter lets customers know that you intend to pursue your legal rights to collect the debt and is often enough to cause the customer to pay in full.

In some instances, the customer may respond to the letter by explaining why the debt remains unpaid. The customer may have a justifiable claim for a bill reduction due to a product defect or late delivery. Or the customer may want to pay, but lacks the money. Initiating communication at the earliest possible time may uncover information about something you are doing wrong and help you with other customers. A lawyer can help you to resolve matters without a lawsuit by settling any disputes and arranging payment schedules. A lawyer may also suggest that delinquent customers sign promissory notes, furnish collateral, and provide personal guarantees of payment.



BUT

Sometimes a lawsuit is the only way to collect a debt. Your lawyer
may recommend a lawsuit after attempting to collect with a demand letter and investigating your customer's ability to pay. For example, you may have to sue a solvent customer who refuses to pay without justification or who fails to respond to your lawyer's letter and follow-up phone call. If the customer is out-of-state and is not subject to jurisdiction of your state's courts, your lawyer may recommend referring the matter to a lawyer in that state. Be sure your credit and collection policy names the employee responsible for working with your lawyer so that critical time is not lost.

Commencing suit may cause the customer to pay. In other cases, the customer may ignore the lawsuit, or hire a lawyer to defend it. If the customer fails to pay after commencement of the lawsuit, your lawyer will take the necessary action to continue it, such as motions, discovery of information and, if necessary, trial. If the customer does not have a valid defense, the action should result in a court judgment in your favor.

[BentBow]

Touchy situation. If you pursue it in legal action, which will end up costing you more than the deductible, but it is the principle of the matter, right?

Live and learn! How did he get the keys, without paying his deductible? There is where your real problem lies.

[atxcio]

Perhaps you could send a letter to the customer with the threat of reporting the delinquent payment to the credit bureaus and their insurance company; and warning that negative items on their credit report can increase their auto insurance and home insurance rates (which is true).