How do we collect money owed to us by an out of state vendor?
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How do we collect money owed to us by an out of state vendor?
Two years ago our company signed up with an out of state company to run our
credit cards. We signed as a no contract, cancel any time member. The company did
not uphold it’s end of the deal and we chose to terminate service. We recently
discovered that they have been charging us monthly all this time. The company
refuses to repay us the 2,700 they have taken past cancellation. Our question
is, if we were to sue them for the money, how could we guarantee that we would
collect it, even after winning the case?
Thank you
Alexa Page
Atlanta’s Best Courier
abcalexagmail.com
Asked on November 26, 2018 under Business Law, Georgia
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
There is no way to guaranty collection. If you sue and they don't pay, you'd then have to try to use one or more of the collections mechanisms against them: putting a lien on real estate they own (if any), garnishing accounts receivable (if they have them and you can identify them), levying on money in their bank account (if you can locate it), etc. None of those things are guaranteed to work: they have to have assets and you have to identify and find those assets to collect. And there is always the possibilty they will go out of business, file bankruptcy, etc., leaving you nothing to collect.
Suing someone in another state is always more difficult and costly; it is hard to do without an attorrney. But a lawyer would likely charge you as much or more than you'd collect, even if you got all the money ($2,700). They may be no cost effective way to recover from them.
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