Skip to content
Ask a question
All posts

What legal steps should I take if a customer is refusing to pay for services rendered in my Ohio-based business?

Picture of Chris Battis By   ·  2 minute read

If a customer is refusing to pay for services rendered in your Ohio-based business, there are several legal steps you can take to try to recover the owed fees.

  1. Send a demand letter: The first step is to send a demand letter to the customer requesting that they pay the amount owed. The letter should include a clear explanation of the services rendered, the amount due, and the date by which payment is expected. You may also want to include a warning that if payment is not made, legal action may be taken.

  2. File a small claims lawsuit: If the demand letter does not result in payment, you can file a lawsuit in small claims court. Ohio small claims court has a limit of $6,000 or less for a single claim. The process for small claims is simplified and you do not need an attorney to represent you. You will need to fill out a complaint form and pay a filing fee. A hearing will be scheduled where you can present your case to a judge. If the judge rules in your favor, a judgment will be entered against the customer.

  3. Hire an attorney to file a civil lawsuit: If the amount owed is more than $6,000, or you believe the case is too complex for small claims court, you may need to hire an attorney to file a civil lawsuit. An attorney can help you gather evidence, draft legal documents, and represent you in court. A civil lawsuit can take longer and be more expensive than small claims court, but it may be necessary if the amount owed is substantial.

  4. Offer a settlement or payment plan: Before taking legal action, you may want to consider offering a settlement or payment plan to the customer. This can be a way to resolve the issue without going to court. Be sure to get any agreement in writing, and make sure that the terms are clear and enforceable.

  5. Consider debt collection agencies: If the customer is still refusing to pay, you may want to consider hiring a debt collection agency. These companies specialize in recovering unpaid debts and can often be more effective than individual efforts. However, be aware of the fees and potential limitations of working with a collection agency.

It’s important to note that there are potential limitations and exceptions to the advice given above. For example, there may be a statute of limitations on how long you have to file a lawsuit, and you may need to take additional steps to collect on a judgment. Additionally, if the customer files for bankruptcy, this can complicate the collection process. In these situations, it may be necessary to consult with an attorney to understand your options and develop a strategy for recovering the owed fees.