Customer stopped payment on check after services were rendered

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beandip

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Hello,

We own a hair salon in California. My wife does styling and permanent make-up at the salon.
Her customer came in for permanent make-up procedure (basically tatooing on make-up) and paid for the
services ($300). 3 days later the client called to tell us that the make-up "didn't stick". This procedure
has written instructions about what to do during the healing process and that the initial 1-2 weeks will have
some skin sloughing and "initial" fading and then the color returns. My wife spoke to the client and explained
that the color WILL come back and to give it a few more days. She also told the client that she has a follow
up appointment in 5 weeks to check progress. This follow up procedure is at no cost and is part of the initial procedure. The client stopped payment on the check even after we told the client to read the paperwork
and the follow-up appointment will address any concerns.

I have read that we should sent a certified letter (with recipient signature required) stating that we demand full payment with bank fees and that the client is liable for up to 3 times the amount of the original check.
And if the client has a good faith dispute, to take it up with my wife (who performed the procedure).

My question is what is considered a "good faith dispute" and how do we handle the next course of action
or do we just let the client know that if she doesn't pay that we will take her to small claims court?

Thank you.

RLU
 
Here is what a merchant is required to do to properly collect payment on such a check.

It protects your legal rights.

The letter:

Sample "Stop Payment" Demand Letter

Send certified mail, with "Restricted Delivery" return receipt requested.

Date:____________(write date here)
_________________ (write name of person who wrote the check here)
_________________ (write address of check writer here)


Dear _________________: (write name of person who wrote the check here)


_________________ (write your/payee's name here) is the payee of a check you wrote for $________ on ___________ (write amount of check and check date here).

The check was not paid because you stopped payment, and I demand payment. You may have a good faith dispute about whether you owe the full amount. If you do not have a good faith dispute with me and fail to pay (1) the full amount of the check in cash, (2) a bank service charge of an amount not to exceed $25 for the first check written for which payment was stopped and an amount not to exceed $35 for each subsequent check written and then stopped before payment, and (3) the costs to mail this letter, within 30 days after this letter was mailed, you could be sued and held responsible to pay at least both of the following:

1. The amount of the check; and
2. Damages of at least $100 or, if higher, three times the amount of the check up to $1,500.

If the court determines that you do have a good faith dispute with me, you won't have to pay the service charge, triple damages, or mailing cost. If you stopped payment because you have a good faith dispute with me, you should try to work out your dispute with me.


You can contact me at:
__________________ (write your name here)
__________________ (write your street address, city, state)
__________________ (write your phone number here)


You may wish to contact a lawyer to discuss your legal rights and responsibilities.

____________________________ (sign your name)



http://www.courts.ca.gov/9739.htm

http://law.onecle.com/california/commercial/index.html

http://www.carreonandassociates.com/articles/dont.htm
 
That's the exact letter we are sending out via certified mail.

If the customer does not pay is our next course of action to take them to small claims court?
 
That's the exact letter we are sending out via certified mail.

If the customer does not pay is our next course of action to take them to small claims court?

Yes. That is your only option. Your letter is simply a demand for them to pay you.

They usually ignore those letters. If they were going to do this properly, they'd have never stopped payment on the check.

Don't be surprised if you are unhappy with the results of your small claims case. Which, by the way, will cost you more money to file.

If you win, you can ask for the loser to pay some of these costs.

But, then you'll spend more time and money trying to collect.

In the end, very few people get paid after enduring the small claims process. Don't look for miracles or money any time soon. In fact, most folks never recover a dollar!
 
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