Retailer from the West Coast sold expensive equipment to someone on the East Coast and is now having trouble getting paid. Oops!

QUESTION.
I sell and install web video camera systems. Against my better judgment I sold equipment to a childcare center in a distant state from my home. The customer made an initial payment of $1,500 and we agreed to terms to pay monthly for the rest, about $5k to $6K in total. She made one payment and then stopped. She said she had a car accident so I suspended payment for several months if she agreed to pay the equipment off. She sent me 3 checks for $1,500 all post dated for the 20th of Jan,Feb & March. They have all bounced and she is not returning my calls.

ANSWER.
For starters you can notify the woman and tell her that she had better pay you what you are owed or else you are going to notify the county prosecutor's office in the customer's county that she paid you with post-dated checks that all bounced. That is a crime, and I think it can create some jail time. She will probably pay you what you are owed if she doesn't want to go to jail.

I'm not sure what the terms of the contract you had with this debtor. Did the contract provide that you were allowed to repossess the property that you sold her? If so, then you can contact the woman and determine if she will voluntarily return your property to you. You may have to send someone out there to pick it up if she will voluntarily give it back to you. Then you can sue her for your loss (i.e., the difference between what you ultimately sell it for and how much she owes you).

If you don't have a contract, and the lady is not willing to give you back your product without paying for it, then that is another form of theft. You can contact the local police in West Virginia and explain that the woman has stolen your property. Chances are they will escort someone of your choosing to go pick up the property.

As a SCORE counselor I am a business coach. I am not supposed to dish out free legal advice. Instead I'm supposed to tell you to see an attorney to help you in this matter. I crossed the line a bit in writing you this email.

I hope my comments are helpful. Good luck! Regards, -Jeff

Jeff Lippincott
SCORE.org Counselor
Princeton, NJ
scoreprinceton @ aol.com
www.scoreprinceton.org
www.jlippin.com