Hosting & Domaining Forum

Hosting Discussion => Web Hosting => Topic started by: rickymartin on Apr 14, 2023, 12:02 AM

Title: Customer refuses to pay for service, what actions should I take?
Post by: rickymartin on Apr 14, 2023, 12:02 AM
Greetings!

I'm facing an issue where I was approached by a company in August  to develop a website for them. We had not signed a contract and they found me through some acquaintances. I completed the website within two months, but soon after, their director informed me that they were unable to pay me and requested me to administer the site.

I refused to grant them access to the admin panel, and continued to maintain the website until March . However, they are now refusing to pay me and alleging that I did not fulfill my obligations. Despite the fact that I have proof of all our correspondence via Gmail, where their editors sent me information which I uploaded to the site.

I understand that failing to sign a contract was a mistake, but what options do I have now? Can I block the site (with FTP access only, their domain and hosting)?
Title: Re: Customer refuses to pay for service, what actions should I take?
Post by: Ankan on Apr 14, 2023, 01:24 AM
If you want to take legal action, you can first make a copy of the site and database and use an anonymous non-Russian VPN to avoid being traced.
But, it is important not to confirm anything afterwards. You can inform the client that you have a backup and can give it back once the payment issue is resolved.

If the payment is not solved, suggest that they order the site again. Punishment should be imposed on any customers who refuse to pay for your work, as it is expensive and tedious to pursue legal action.
Title: Re: Customer refuses to pay for service, what actions should I take?
Post by: Abhinavjain on Apr 14, 2023, 04:21 AM
Based on their behavior, it appears that they do not require the usage of this site. However, it seems that you are solely in need of money. Attempting to take the site hostage and blackmail them is unlikely to be successful as it will offend and embarrass them.

Instead, I recommend sending a well-written pre-trial claim in paper format, which can be found online, to demonstrate your seriousness and legal knowledge. This action shows that you are willing to defend your rights properly and will typically result in clients paying what is owed without resorting to legal action. However, if this is ignored, taking legal action is not as arduous as it may seem.
Title: Re: Customer refuses to pay for service, what actions should I take?
Post by: wstandn on Apr 14, 2023, 05:26 AM
Develop a new website and include a redirect to the disputed website. Within the new website, explain your grievances against the company while presenting your evidence. Express apprehension about the customer's capability to pay for your services and offer a resolution to the issue.
If you are seeking compensation, it may be necessary to put the customer in an equally inconvenient and unfavorable situation as your own. Best of luck!
Title: Re: Customer refuses to pay for service, what actions should I take?
Post by: anilkh7058 on Jul 03, 2023, 02:21 AM
Oh it is a serious problem.
software development company (https://www.techmahajan.com/)
Title: Re: Customer refuses to pay for service, what actions should I take?
Post by: lensional on Jul 20, 2024, 03:48 AM
Here is a breakdown of your options and the steps you can take.

1. Gather dоcumentation: Compile all relevant communications with the company. This includes emails, messages, notes from calls, and any dоcumentation related to the project. Having a clear record of your interactions will be vital for demonstrating your case. Focus on dates, the work you delivered, and how they responded.

2. Understand Ownership and Rights: Since you created the website, you hold certain intellectual property rights. Explore your local laws regarding copyright and ownership of digital work. Understanding your rights can empower you as you negotiate or consider legal action.

3. Reach Out for Discussion: Attempt to communicate with key individuals in the company, such as the director or anyone else in authority. Stay professional and calm. Clearly outline your position, emphasizing the work you completed and the successful communication that took place during the project. Use your gathered dоcumentation to highlight instances where they approved or requested modifications.

4. Send a Formal Invoice: If you have not done so already, prepare a formal invoice for your services. Include detailed descriptions of the work done, the number of hours spent, and the agreed-upon payment terms. Sending this invoice formally can help convey the seriousness of your request and provide a paper trail.

5. Legal Consultation: If the company continues to refuse payment, consider consulting a legal professional. They can advise you on whether you have grounds for small claims court or if other legal remedies are appropriate. Be prepared to provide all your dоcumentation to support your case.

6. Managing Website Access: If you have access to their domain and hosting, you may have some level of control over the site. However, take care before making any drastic changes, such as blocking access. If you decide to withhold access, notify the company formally and state the reasons for your actions. Keep in mind that taking aggressive actions might lead to legal consequences.

7. Mediation Consideration: If direct discussions do not yield results, consider mediation. This process involves a neutral third party who can facilitate a conversation between you and the company to help achieve a mutually agreeable resolution. Mediation can often be quicker and less costly than legal action.

8. Learn for the Future: This experience underscores the importance of having a written contract for all future projects. Develop a standard contract template that includes project details, payment terms, deliverables, and timelines. This will help protect you in future projects and set clear expectations.

9. Prepare for Different Outcomes: Be ready for various outcomes as you navigate this situation. The resolution could range from receiving payment to having to take legal action or reaching a compromise through mediation. Stay patient, keep track of everything, and consider seeking support from other professionals who have gone through similar challenges.
Title: Re: Customer refuses to pay for service, what actions should I take?
Post by: Finacustech on Jul 22, 2024, 04:23 AM
As there is no contract, it is important to focus on communication and legal action. First, send a formal demand letter stating the work completed and the due date for payment, using the email correspondence as evidence. You should consult a lawyer for further action if payment is still refused. Blocking a website may incur legal risks, so expert legal advice is essential before taking such action.
Title: Re: Customer refuses to pay for service, what actions should I take?
Post by: GR Group on Jul 23, 2024, 05:05 AM
When a customer refuses to pay for a service, dоcument all interactions and agreements, send a formal reminder, and consider mediation. If unresolved, consult a legal professional for advice on small claims court or debt collection agencies. Clear communication and dоcumentation are key to resolving such disputes.
Title: Re: Customer refuses to pay for service, what actions should I take?
Post by: hrin on Mar 02, 2025, 07:54 AM
You have the right to take control of the website, as you've maintained it until March. Blocking the site with FTP access only, their domain, and hosting is a viable option. This will ensure that the website remains functional, but the company won't be able to make further changes.

However, before taking drastic measures, consider sending a formal notice to the company, reiterating your expectations and the agreed-upon scope of work. This may prompt them to reconsider their stance and make payment.

Alternatively, you can also report the issue to the relevant authorities, such as the Better Business Bureau or your local consumer protection agency. They can mediate the dispute and help resolve the matter.