Customer's check bounced... now what?

OK, sure, assume that it was a mistake and call the person that issued the check. Be nice and all that stuff, but, business is business. If they fail to make good on it, have the lawyer call; usually a call from the lawyer fixes the situation. Next, it is court time.

Treat this as a lesson learned. Here's my policy; 50% retainer due with signed contract. Balance due 30 days prior to the event.

My first bounced check taught me the lesson. It was a birthday party and the balance check bounced. The long and short of it was they gave me the run around and I finally gave up. Two years later the company name had changed from "The Good Knight DJ" to "Good Knight Entertainment" and I was booked for a wedding and it turns out that the MOB was paying and she was the client from the birthday party. She didn't recognize me but I did recognize her. I jacked up the price by what she owed plus the NSF fees. I also required money order, cash, or cashier's check. She complied. I never said a word to her about it. Boy, I wanted to though.

Here's what my contract says about fees:

2. Fees:

2.1. Amount for services: This is the total price of the contract.

2.2. Retainer: This is the non-refundable fee paid to Good Knight Entertainment to secure the services for the date being booked. This amount shall be subtracted from the total amount for services.

2.3. Balance: The amount remaining after subtracting the retainer and any other portion of the amount for services paid.

2.4. Schedule:

2.4.1. The client may pay Good Knight Entertainment in increments of $250 per month up to 30 days prior to the event.

2.4.2. Final payment is due 30 days prior to the event. The remaining balance must be paid in full 30 days prior to the date of event. If the balance has not been paid in full 30 days prior to the event Good Knight Entertainment reserves the right to reopen the date for booking and cancel the event performance and the client is still responsible for the remaining balance of the total amount for services. If it is less than 30 days prior to the event when the contract is signed, the total amount for services will be due with the signed contract.

2.4.3. The client may pay more than $250 per month.

2.5. Good Knight Entertainment reserves the right to seek legal means to recover the remaining balance of the total amount for services and any court and legal fees resulting from such legal means.

2.6. The client may request to pay the remaining balance on the day of the event. This request must be received in writing by Good Knight Entertainment no less than 30 days prior to the event. If such request is granted, the remaining balance must be paid by cash, bank (cashier's) check, or money order and must be paid prior to Good Knight Entertainment staff setting equipment up. If such request is granted, and the remaining balance has not been paid 15 minutes after the scheduled start of the event, Good Knight Entertainment staff will leave the venue and the client will still be responsible for paying the remaining balance.

2.7 There will be a $100 fee added for all returned checks.

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never had a problem now since I was hit with one bounced cheque about 25x years ago and have always got money upfront or no show...

that states it in my contract that all monies are payable 14-21 days before the event!!!

My Partner always told folks, in a sarcastic joking way, that our company name was figured into Bounced Checks... He said we needed to have some place that said

"If you bounce us... We'll bounce you, -- Bounce Multimedia"

Papa Deuce said:

So, they "say" they plan to make good on the check... but they are refusing my $40 bounced check fee... which is in the contract. They "say" they will pay me $15, which is what my bank charged me....

I should probably just take it and move on, but now I am really pissed... and I also do not think they will be giving me the balance... Just a feeling I get, from the attitude they gave me.... like who the hell do I think I am asking for them to make good?

Suggestions on how to go from here? I think I will wait 7 days max... and the it gets "legal".

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Papa -

It's really elementary now - since they seem to have made it very plain to you that they refuse to pay the bounced check fee - which according to you is contained in the payment terms of your contract -


If they signed their name to a legal document, then you are entitled as a business owner to uphold what your contract stipulates. If you don't enforce the terms of your contract, then why even have one?

The customer reneged on their agreement to abide by the terms of the written contract, which now means you have the right to enforce the small claims court clause.

I wish you luck, my friend.

Oh and as an after-thought, from this point forward, get your payment in full prior to the event so you don't have to go thru this.

Papa: Most local district attorney's offices have a division that prosecutes and collects on bounced checks. They take bounced checks seriously as it harms local businesses, and they play tough! Think of it like your own personal collection agency, only this one has the legal power to send the check bouncer to JAIL.

If the time comes that you have exhausted all polite methods, I would go this route next. It will take up less of your valuable time than pursuing legal action in small claims court. If they don't want to pay you, they won't. The DA will pursue your bounced check as a CRIME, while small claims court treats it as a civil matter.

Take the advice of all the experienced professionals here on this board first...be patient and gracious by all means....but save this option as your last resort to get the money you and your family deserve.

Papa Deuce said:

So, they "say" they plan to make good on the check... but they are refusing my $40 bounced check fee... which is in the contract. They "say" they will pay me $15, which is what my bank charged me....

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And when did you give them a choice? Contract says $40, and they signed it right? Sure the bank charged you $15, but #1 that is none of their business, and #2 that is the wholesale cost of the charge, when you have to handle it you have to charge a retail amount. The $25 upcharge covers your hassles or inconveniences caused by the bad check, and your time for retrieval, etc... The cost of the wedding is based on no additional expenses, and the expenses WERE appended in the contract they signed, so why let them off the hook for the extra $25? It is legal 101.

Now if that $25 is a deal breaker, you have some thinking to do...but why put the ball in their court? I would stick to the terms of the contract. Deviation sets a bad precedent.

Maybe if they had IMMEDIATELY made good with one dun, it would be worth it...but when you say they PLAN to make good, if they are making me wait for my money, and have several contacts with them to get it, I'd want the fee. That is just good business.

Same thing happened to me.

They drove to my town to hand deliver another. It was good.
Simple error on which account they made a deposit.

Nooooooo....

Papa Deuce said:

So, they "say" they plan to make good on the check... but they are refusing my $40 bounced check fee... which is in the contract. They "say" they will pay me $15, which is what my bank charged me....

I should probably just take it and move on, but now I am really pissed... and I also do not think they will be giving me the balance... Just a feeling I get, from the attitude they gave me.... like who the hell do I think I am asking for them to make good?

Suggestions on how to go from here? I think I will wait 7 days max... and the it gets "legal".

Click to expand...

The they do not want to deal with me. I'm like a *Guidio*, stiffing me is like starting a fight with one of the guys from the Sopranos..Ain't gonna happen beotch!!

I go to their house about 4 pm, and I wait...When the first person comes home, I meet them at their door..If they *forget* who you are, I remind them

Then if they ain't got the check, I wait...Might as well being my coffee wit me...I ain't goin' nowhere!

It's like oweing $$ to a bookie. :sqerr:

That is why I collect all $$$ 2 weeks before the event...NO $$, NO PLAY It's on my contract...

I've been there, can ya tell!!?? I got my $$$$...

"Where's my damn soap box."
"Honey, have you seen my soap box?"
"Where?" "Okay, found it, thanks."
Step on top, grab bullhorn, squeeze button with left hand while waggling right finger in the air, begin......

While there are multiple ideologies on when, where, and how to get payments for rendering DJ services or agreeing to date and time reservations (which ever the DJ decides as their product...service or calendar date), there are a few things that have commonality with wedding couples, the two biggies being vendor pricing sticker shock and the other, boundless, never ending, inconceivable to ever be apart...LOVE.

Having empathy for the lack of funds, especially at booking time, maybe a multi-level payment plan be given consideration. Instead of one payment for contract signing and the final due [when ever], why not consider offering them a three, four, or five payment plan option? Bump your rates a hundred or two bucks to cover the additional hassle, offer that extra charge as savings if they wish to pay in full or in two installments.

Next, everyone seem to have a cancellation [termination of date/services] clause.

"If you [client] bail out of this agreement XXX days before the event, you owe me x% of the balance, XX days before the event you owe me XX% of the balance, and if X days before, the entire amount."

While this does a wonderful job covering a DJ's hiney for cancellations it does little for the bounced check and/or credit card charge-back protection just as this thread exemplifies.

Radical recommendation.

Why not make your final payment due date on the same date you'd expect to be paid if they canceled the contract? Seriously. Ponder this first from a business perspective not an emotional one.

By having the final payment date be, say, 30, 60, or 90 days in advance of the date, it is possible to eliminate all the "drop dead pay me date" verbiage from the contract. Secondly, you have a 90 day window to pursue bad/bounced checks or credit card charge-backs, and lastly, if they do cancel and expect any part of it back, you already have the money...they have to come and get it, as opposed to they contractually owe you the money, they haven't paid, therefore you have to go get it.

For the skeptics that think clients would not be willing to agree to and sign a contract that says all fees must be paid in full 90 days before the event date, here's where this statement [boundless, never ending, inconceivable to ever be apart...LOVE.] applies. At contract signing, there's no way this event is NOT going to happen in her eyes. Nothing more needs to be explained on that point.

Thanks for reading.

[Off soap box, bullhorn stored, resume normal Monday routine.]

AMS Albany: See you tonight?

[and those who think Tim is only joshing about getting his money, it's true. He is the legendary collections wizard in our region.]

Here is something that happened to me a few years ago and might be of interest to other Canadian DJ's (not sure if the American Bank offer this) Here is my story. I had a cheque bounce when it happened I called the customer and they were apologetic and said they would send out a new one right away..10 days later still no cheque, so I called back again. This time they said, oh sorry totally forgot to do it and will do it later that day, A week later still no cheque. So once again I call this time no answer so I left a voicemail, no return call So I tried again with the same results.

I figured that they were screening their calls so just for the heck of it when I was out of town one day I called them and guess what, they answered and were kind of surprised. Anyway I said I would stop by and pick up the cash if that was more convenient and they said well we are just heading out and wont be home...Yeah Right!! Any way I told them that if it was not received by a certain date that I would have to take further action. Well that day came and passed with no money.

Now here is where it gets interesting, I took the Cheque to the clients bank and asked if I could get it Certified (there is a cost to do this). The teller looked it up and said unfortunately I can't at this time (meaning there was no money in the account). But she explained to me what I could do to try and collect it. I thought about it and did some planning and tried to decide when the best time to do it was and figured that the best time would be the first week of the Month which also happened to be the first week of December I figured that they would be either putting money in the account for Christmas or some payments coming do that they would have to cover.

So this is what I did, I went to my bank and told them I wanted the cheque sent on Guarantee (the cost at the time to do this was $20) Basically what it does is your bank sends the cheque to the customers banks for 30 Days and as soon as the money is in the customers account it is STAMPED Certified and you get your money. Well Christmas came and went and no money, but the first week of January I checked my account and tadaaa.. My money was there.

I just really wish that I could of been a little bird on their wall when they realized that I got paid and possibly one of their other bills didn't...

Tim - Road trip to Valley Forge???

Zac : You gonna be there tonight?

Got me to thinking about the paperboy in "Better Off Dead". LOL!

Click Here: YouTube - Better Off Dead

On a similar event:

Good Morning!

I have received the contract, and thank you… However, my parents just ran into some financial difficulty, and we can’t send the funds right now. Can I get back with you in two to three weeks, to get an updated contract, and at that point send you the money?

Let me know, Meagan

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Yellow flag: "my parents just ran into some financial difficulty, and we can’t send the funds right now." OK, she let me know that there are problems but what about the future? It is for a wedding in February, the price is $800, and the Contract Signing Fee is 50% or $400. If they can't come up with $400 now are they going to be able to come up with the balance.

I told her that she can let me know and I'll send a new contract; however, if I get booked between now and then it would be one of my associates doing her wedding.

I did her sister's wedding earlier this year and my feeling from her, ego aside even though I am the greatest wedding DJ on the planet , is that she wants me. I don't think anyone else will book 2/2, but you never know.

At least she told me but I am kind of getting bad vibes.

Nothing wrong with yellow flags until they become trouble...until you GET the deposit, you dont have the contract so the date is technically available. If you get the deposit, and the contract states payment is due BEFORE performance, chances are good you arent going to get stuck...and I am sure if you are on premise refusing to play and keeping the deposit that someone will come up with the money, LOL...

No business is better than bad business...my mantra....