Collecting What’s Owed You
A client sent me to a meeting and put me up overnight in a very nice hotel. When I checked in, they asked for my credit card, which I gave them. The next morning, when I looked at the invoice which had been slipped under my door, I confirmed that the billing address was my client’s and not mine. The meeting was highly productive, the amenities at the hotel outstanding and I felt totally pampered.
A couple of days later I was checking my business checking account online and realized I’d been charged for the room and the meals… not only that, the charges overdrew my account and I was charged overdraft fees twice. (Geeze I hadn’t realized how much they charge for overdrafts these days!)
I immediately forwarded a copy of the charges to my client in total confidence I’d receive a check shortly.
First, I got an email from someone in accounting apologizing and explaining the hotel shouldn’t have even asked for my credit card. Then I got an email asking for a copy of the the charges. Nothing happened for a couple of days and this morning I found another email asking for a copy of the charges and an explanation of sorts that the hotel needed them.
Apparently, instead of cutting me a check, the client’s accountant decided to ask the hotel to reverse the charges and pay for the overdrafts… I don’t know why they decided to go that way, but it’s turning into a drama.
The good news is that I’m on top of my accounts enough to first notice I’d been charged when I shouldn’t have been, and to keep track of it and know that I haven’t yet been reimbursed. I also have enough money in that account not to be charged overdrafts.
I’ll get the money - I have no doubt the client is good for it. But it is up to me to make sure I get reimbursed. And that’s the real point of this point. As a freelancer, you’ve got to keep track of your money and you’ve got to stay on top of your clients when it comes to getting paid.
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Tags: business, clients, collecting, collection, fees, freelance write, freelance-writing, home-business, money, work-at-home, writerRelated Stories
POSTED IN: Business of Freelance Writing
5 opinions for Collecting What’s Owed You
Justin Dupre
Jun 19, 2008 at 10:37 am
That’s a pretty freaky instance. It’s a bit confusing as to why your client wouldn’t just pay you as it would sort it out much cleaner. Perhaps they wanted the points on their business card, though. Hehe.
Hope it gets taken care of and best wishes,
Justin
Anne Wayman
Jun 19, 2008 at 12:56 pm
No telling, but I suspect I’ll be fine… I’ll keep you posted
Ari Herzog
Jun 19, 2008 at 3:34 pm
That reminds me of the time, several years ago while moving into a new apartment and debiting hundreds of dollars of items to my bank card, I transacted with a teller, not an ATM, and deposited $2000 of checks: half into my savings account and half into my checking account to pay for my purchases.
When I looked at my online statement a few days later, I saw in horror that $1000 was deposited into the savings account but $1000 was withdrawn from my checking account. Somehow, the bank took out $1000 even though I did no such action!
Suffice to say, the bank later realized its error but because I was also debiting items for purchase, I wound up receiving hundreds of dollars worth’ of returned check fees and overdraft fees, all of which the bank paid for and didn’t affect my credit line.
It was crazy and your story reminded me of it.
Oh, and the moral of my story is always use ATMs when necessary because even if you write your account number wrong, the ATM goes by what buttons you press whereas tellers can only go by what you write down.
Allison
Jun 19, 2008 at 3:51 pm
This perfectly illustrates the need for a good contract whenever working with a client. Depending on the client, if you don’t have a contract it can be really easy for them to say, “Well, it is not our fault that the hotel charged you. We’ll reimburse you for the room/meals, but not the overdraft fees.” That would be an even bigger mess, since it would mean you’d have to go after the hotel - not fun.
So the take-away message I got from this post as was A) have a good contract with all clients and B) work with people you trust.
Anne Wayman
Jun 19, 2008 at 6:27 pm
Allison, good points… in this case my contract does cover “expenses” but doesn’t spell them out… and I wouldn’t have thought to put overdraft costs in anyway. The good news is I do trust the client. I expect the reversed charges to show up in my account tomorrow (I’ve seen the receipt) and I’m expecting a gift card that more than covers the overdraft, plus a letter to the bank explaining… how nifty is that!
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