Web designer Frank Jonen has taken extreme action against his late-paying client, San Francisco-based gym chain Fitness SF.

Mr Jonen's web design firm has been working on the new Fitness SF website and brand identity for over six months; but he ultimately took the decision to replace their homepage with a simple text statement.

If you deal with customers in the Americas - including not just the USA, but also Canada, Mexico and Brazil - you should be aware of the increased likelihood of a very late payment becoming an uncollectable bad debt.

According to a report from credit insurers Atradius, a whopping 52% of the most overdue payments in the region are simply never collected, compared with 35% in Europe.

Continuing our series of articles on debt collection in the USA, this article covers the Statute of Limitations and Interest Rates on a state by state basis. This article is based on a recent review conducted by our American Debt Collection partner via their network of state based debt collection attorneys.

Before considering legal proceedings to recover an business debt in America we would recommend you first read the preceding three articles in this series.

Part 1 - USA Debt Collection Procedures

Part 2 - Ten Questions to ask before Suing a Debtor in the USA

Part 3 - USA Debt Collection - Court Witnesses

In part two of our series on Debt Recovery in the USA our American Debt Collection agent outlined the 10 questions any creditor must ask prior to taking a claim to court in the USA. Whilst many of the points raised in this piece are not entirely dissimilar to the questions any creditor should ask before pursuing legal action, one critical point is often overlooked.

If your company is considering taking legal action in the USA to recover unpaid invoices, you will be expected to provide at least one witness at trial. Our US affiliate explains:

 

In our first blog post on USA debt collection we discussed the three pre-legal stages an American debt recovery agency will use to attempt recovery. But what happens when they have done their best to collect, but the debtor refuses to co-operate?

In this instance your only option to collect the debt may be to consider taking legal action. As with any legal claim here in the UK you can expect to pay the court costs and lawyers fees. But unlike in the UK you as a creditor will be required to attend any hearing, generally at your own cost.

 

Here at Safe Collections we have decades of experience in helping our customers recover unpaid invoices and bad debts both in the UK and across the globe.  One of our key markets is the USA and we have been working closely with our US debt recovery affiliate since 1986.

Robert is the Vice President of International & Corporate Quality at our affiliate office in New York and here he explains the Three Phase USA debt collection procedures they follow in recovery of overdue accounts from US based debtors.