# Would You Hire A Debt Collection Agency For This Debt? **URL:** \ **Category:** In My Humble Opinion\ **Created:** [March 8, 2021, 11:34pm UTC](https://boards.straightdope.com/t/would-you-hire-a-debt-collection-agency-for-this-debt/937484 "2021-03-08T23:34:48Z")\ **Posts on this page:** 20\ **Page:** 3
**Author:** ![TriPolar](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tripolar/32/3008_2.png) [@TriPolar](https://boards.straightdope.com/u/TriPolar)\ **Post date:** [March 14, 2021, 5:46pm UTC](https://boards.straightdope.com/t/would-you-hire-a-debt-collection-agency-for-this-debt/937484/41 "2021-03-14T17:46:26Z")
If it’s a bad check then here in RI the police will accompany you to collect, on duty as part of their job. I don’t think they have any authority to act, but witnessing the act of refusal to pay is supposed to lead to more serious action from a prosecutor. I believe it clarifies the intent to defraud. ---
**Author:** ![Cat\_Whisperer](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cat_whisperer/32/4839_2.png) [@Cat\_Whisperer](https://boards.straightdope.com/u/Cat_Whisperer)\ **Post date:** [March 14, 2021, 5:47pm UTC](https://boards.straightdope.com/t/would-you-hire-a-debt-collection-agency-for-this-debt/937484/42 "2021-03-14T17:47:19Z")
The more we discuss the problems with collecting on a court order, the more I want to take my $600 and be happy for it. Which is complete bullshit, because people should pay their bills after you do work for them, but they know that they will make your life a living hell if you try to collect through the court systems. ☹ ---
**Author:** ![Northern\_Piper](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/northern_piper/32/5304_2.png) [@Northern\_Piper](https://boards.straightdope.com/u/Northern_Piper)\ **Post date:** [March 14, 2021, 5:52pm UTC](https://boards.straightdope.com/t/would-you-hire-a-debt-collection-agency-for-this-debt/937484/43 "2021-03-14T17:52:17Z")
> [@TriPolar](#): > > If it’s a bad check then here in RI the police will accompany you to collect, on duty as part of their job. I don’t think they have any authority to act, but witnessing the act of refusal to pay is supposed to lead to more serious action from a prosecutor. I believe it clarifies the intent to defraud. But it could just as easily be that the debtor believes that they have a valid reason not to pay, not an intent to defraud. (eg goods not delivered on time, work not done as specified in the contract, etc. (Not saying any of that is the case here, of course. 🙂 ) Police here don’t get involved in civil debt enforcement, for just those reasons. They’re familiar with the criminal law, not civil law. ---
**Author:** ![Cat\_Whisperer](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cat_whisperer/32/4839_2.png) [@Cat\_Whisperer](https://boards.straightdope.com/u/Cat_Whisperer)\ **Post date:** [March 14, 2021, 5:55pm UTC](https://boards.straightdope.com/t/would-you-hire-a-debt-collection-agency-for-this-debt/937484/44 "2021-03-14T17:55:56Z")
> [@Northern\_Piper](#): > > [snip]Police here don’t get involved in civil debt enforcement, for just those reasons. They’re familiar with the criminal law, not civil law. I worked for a guy who had the sheriff show up at work one day and start seizing his assets. ---
**Author:** ![TriPolar](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/tripolar/32/3008_2.png) [@TriPolar](https://boards.straightdope.com/u/TriPolar)\ **Post date:** [March 14, 2021, 5:57pm UTC](https://boards.straightdope.com/t/would-you-hire-a-debt-collection-agency-for-this-debt/937484/45 "2021-03-14T17:57:46Z")
It’s not common for police to get involved in any civil matter in the US, and this is an exception in RI, possibly just an old tradition. I’m sure people who have good reason to dispute a payment are in the clear, this practice I am pretty sure was intended to focus on real deadbeats. As I noted, I don’t think a police officer can do anything except intimidate, and I suppose he might as easily be a witness to a valid disputation of the debt. ---
**Author:** ![Northern\_Piper](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/northern_piper/32/5304_2.png) [@Northern\_Piper](https://boards.straightdope.com/u/Northern_Piper)\ **Post date:** [March 14, 2021, 7:01pm UTC](https://boards.straightdope.com/t/would-you-hire-a-debt-collection-agency-for-this-debt/937484/46 "2021-03-14T19:01:06Z")
> [@Cat\_Whisperer](#): > > I worked for a guy who had the sheriff show up at work one day and start seizing his assets. The sheriff in Canada is not part of the police. Sheriffs are the civil enforcement officer for the courts, who enforce a judgment once it’s been properly registered with the court. ---
**Author:** ![Melbourne](https://avatars.discourse-cdn.com/v4/letter/m/b5e925/32.png) [@Melbourne](https://boards.straightdope.com/u/Melbourne)\ **Post date:** [March 14, 2021, 8:09pm UTC](https://boards.straightdope.com/t/would-you-hire-a-debt-collection-agency-for-this-debt/937484/47 "2021-03-14T20:09:13Z")
> [@Northern\_Piper](#): > > Sheriffs are the civil enforcement officer for the courts, who enforce a judgment once it’s been properly registered with the court. As in the USA, except that in the USA some (but not all) sheriffs still also responsible for policing. ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [March 14, 2021, 8:12pm UTC](https://boards.straightdope.com/t/would-you-hire-a-debt-collection-agency-for-this-debt/937484/48 "2021-03-14T20:12:07Z")
> [@Joey\_P](#): > > They offer all this protection and you’re legally required to take/buy it. You _must_ buy this? Really? ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [March 14, 2021, 8:16pm UTC](https://boards.straightdope.com/t/would-you-hire-a-debt-collection-agency-for-this-debt/937484/49 "2021-03-14T20:16:06Z")
> [@Cat\_Whisperer](#): > > It bothers me because he’s going to get away with de-frauding us and acting like a real dick, but I think our best course is to take the bad debt expense and walk away from worrying about his bad behaviour. And tighten up our contracts and accounts receivable practices for the future. I am not a expert in Canadian tax law, but unless you have already including this as income , there is no such thing. However- can you tell us WHY he wont pay you? Because if his story is halfway decent, and if Canadian Small Claims courts judges are like those in the USA, you might not win. ---
**Author:** ![Northern\_Piper](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/northern_piper/32/5304_2.png) [@Northern\_Piper](https://boards.straightdope.com/u/Northern_Piper)\ **Post date:** [March 14, 2021, 8:22pm UTC](https://boards.straightdope.com/t/would-you-hire-a-debt-collection-agency-for-this-debt/937484/50 "2021-03-14T20:22:03Z")
> [@DrDeth](#): > > I am not a expert in Canadian tax law, but unless you have already including this as income , there is no such thing. **Cat\_Whisperer** has pointed out that she is acting on the advice of her accountant, who presumably is familiar with Canadian tax law. ---
**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\ **Post date:** [March 14, 2021, 8:24pm UTC](https://boards.straightdope.com/t/would-you-hire-a-debt-collection-agency-for-this-debt/937484/51 "2021-03-14T20:24:17Z")
Yes, good point. Still, my question remains. ---
**Author:** ![Northern\_Piper](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/northern_piper/32/5304_2.png) [@Northern\_Piper](https://boards.straightdope.com/u/Northern_Piper)\ **Post date:** [March 14, 2021, 8:28pm UTC](https://boards.straightdope.com/t/would-you-hire-a-debt-collection-agency-for-this-debt/937484/52 "2021-03-14T20:28:34Z")
> [@CookingWithGas](#): > > Generally you cannot take a lawyer into small claims court You can in Canada. ---
**Author:** ![CookingWithGas](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cookingwithgas/32/485_2.png) [@CookingWithGas](https://boards.straightdope.com/u/CookingWithGas)\ **Post date:** [March 14, 2021, 8:44pm UTC](https://boards.straightdope.com/t/would-you-hire-a-debt-collection-agency-for-this-debt/937484/53 "2021-03-14T20:44:06Z")
Very good point. I overlooked that the OP is in Canada. ---
**Author:** ![asahi](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/asahi/32/8693_2.png) [@asahi](https://boards.straightdope.com/u/asahi)\ **Post date:** [March 14, 2021, 9:01pm UTC](https://boards.straightdope.com/t/would-you-hire-a-debt-collection-agency-for-this-debt/937484/54 "2021-03-14T21:01:58Z")
> [@Cat\_Whisperer](#): > > If we take them to small claims court, the court costs will eat any profit; there is also the difficulty in collecting from people who refuse to pay. It looks like a debt collection agency is our only option, and I am completely inexperienced with this. Maybe send a letter or two reminding them that it could be turned over to a collection agency and see what happens (without actually doing the deed). ---
**Author:** ![Cat\_Whisperer](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cat_whisperer/32/4839_2.png) [@Cat\_Whisperer](https://boards.straightdope.com/u/Cat_Whisperer)\ **Post date:** [March 14, 2021, 10:07pm UTC](https://boards.straightdope.com/t/would-you-hire-a-debt-collection-agency-for-this-debt/937484/55 "2021-03-14T22:07:06Z")
> [@Northern\_Piper](#): > > > [@Cat\_Whisperer](#): > > > > I worked for a guy who had the sheriff show up at work one day and start seizing his assets. > > The sheriff in Canada is not part of the police. Sheriffs are the civil enforcement officer for the courts, who enforce a judgment once it’s been properly registered with the court. Sorry, I wasn’t clear - I was agreeing with you. 🙂 ---
**Author:** ![Johnny\_L.A](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/johnny_l.a/32/1084_2.png) [@Johnny\_L.A](https://boards.straightdope.com/u/Johnny_L.A)\ **Post date:** [March 14, 2021, 10:19pm UTC](https://boards.straightdope.com/t/would-you-hire-a-debt-collection-agency-for-this-debt/937484/56 "2021-03-14T22:19:13Z")
Our collection department will go after debts much less than $1,000. While most of their calls I overhear are to consumers, our company sends business credit data to Experian and Equifax. Our members who send their commercial accounts receivable do report derogatory information; either simply through aging (days beyond terms), or with an actual code for Collections, Legal involvement, etc. (There are also codes for good payers.) A derogatory line on a credit report affects the debtor’s credit rating. This means that a company that has done business with you and has not paid, may not be able to get favourable credit terms when they borrow again, or may be refused credit. While your company may be too small to report your monthly accounts receivable to a credit agency, the threat of reporting and the repercussions therefrom may be enough to induce payment. I’m not familiar with our credit reporting department, but from what I’ve overheard a non-payer does get dinged on their credit report. ---
**Author:** ![Slow\_Moving\_Vehicle](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/slow_moving_vehicle/32/291_2.png) [@Slow\_Moving\_Vehicle](https://boards.straightdope.com/u/Slow_Moving_Vehicle)\ **Post date:** [March 15, 2021, 2:21pm UTC](https://boards.straightdope.com/t/would-you-hire-a-debt-collection-agency-for-this-debt/937484/57 "2021-03-15T14:21:00Z")
> [@Cat\_Whisperer](#): > > I had a brainwave and did a calculation of what writing off this bad debt would do to our income tax picture for 2020 - if I got my calculations right, writing it off will save us $600 in taxes, and the client has stated unequivocally that he is, to paraphrase, “Never ever ever ever ever ever ever going to pay this debt.” > > It bothers me because he’s going to get away with de-frauding us and acting like a real dick, but I think our best course is to take the bad debt expense and walk away from worrying about his bad behaviour. And tighten up our contracts and accounts receivable practices for the future. > > Thank you all for your input - I read it all, and cogitated on all of it Reading this thread, the testosterone-driven, dick-swinging toxic male in me wants you to screw these guys over hard, punish them for disrespecting you, grunt grunt chest pound. The more sensible, mature part thinks that taking the tax benefit and lesson learned, and just walking away, is the more intelligent choice. Chalk it up to experience, and, as you said, take steps so that this doesn’t happen again. Then go on to scientology dot com and sign your ex-client up for a free personality test. ---
**Author:** ![Cheesesteak](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cheesesteak/32/3694_2.png) [@Cheesesteak](https://boards.straightdope.com/u/Cheesesteak)\ **Post date:** [March 15, 2021, 4:57pm UTC](https://boards.straightdope.com/t/would-you-hire-a-debt-collection-agency-for-this-debt/937484/58 "2021-03-15T16:57:36Z")
> [@Cat\_Whisperer](#): > > I will enter this invoice as income for 2020, and I will enter it again as an expense under the “Doubtful Accounts” line. I’ve been in contact with my accountant regarding this issue, and this is under her guidance. Does this actually preclude you from going after your debtor for payment? If it does not, you can get your $600 today and still go after this guy for money owed. ---
**Author:** ![Cat\_Whisperer](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/cat_whisperer/32/4839_2.png) [@Cat\_Whisperer](https://boards.straightdope.com/u/Cat_Whisperer)\ **Post date:** [March 15, 2021, 5:58pm UTC](https://boards.straightdope.com/t/would-you-hire-a-debt-collection-agency-for-this-debt/937484/59 "2021-03-15T17:58:36Z")
That’s a good question - it sounds like a debt that has been written off is closed, but I can see that you might address a collection after you’ve written a debt off by putting it back into reported income. ---
**Author:** ![Sigene](https://avatars.discourse-cdn.com/v4/letter/s/df788c/32.png) [@Sigene](https://boards.straightdope.com/u/Sigene)\ **Post date:** [March 15, 2021, 6:24pm UTC](https://boards.straightdope.com/t/would-you-hire-a-debt-collection-agency-for-this-debt/937484/60 "2021-03-15T18:24:48Z")
I know I’m late to the game and post #60 is not likely to be read…But… I’d suggest taking them to small claims court for only one reason…the education you will get out of it will be worth the $100. You can learn the process and become comfortable with it so that when it becomes a more necessary thing you will be better prepared for a future situation. [Previous page](https://boards.straightdope.com/t/would-you-hire-a-debt-collection-agency-for-this-debt/937484.md?page=2) [Next page](https://boards.straightdope.com/t/would-you-hire-a-debt-collection-agency-for-this-debt/937484.md?page=4)