Etsy Threatens to Send Sellers with Past Due Bills Over $1 to Collection Agency

[mandy]

Following our November close and beginning this week, Etsy will be emailing a reminder to those sellers who have overdue bills. The email will outline how to pay and the consequences for non-payment. We want to provide everyone the opportunity to settle their account balances.  We do realize that this is a busy time for everyone but think that it is important enough of an issue to address it with the November billing cycle.

Two weeks after the initial email referenced above, Etsy will begin to send seller accounts with bills over 90 days past due to a third-party collection agency. This means that if a seller still holds an unpaid balance from August 2008 fees or prior, then that seller may receive a letter or other communication from a collection agency on behalf of Etsy about settling his/her outstanding balance. Before sending a seller to the third-party collection agency, Etsy will attempt to notify him/her a final time by email. This new step of involving a collection agency as a regular part of our collection process is the only change to our billing procedure at this time. This is not an action we take lightly, but it is one that is important for building Etsy as a lasting company. 

We hope to only use the collection agency as a last resort, and you can help us avoid it by responsibly paying your bill on time. If your bill is overdue and consequently you are unable to list, relist and renew items, please sign in and pay your bill to have your shop privileges reinstated. If your account is closed and you still owe fees to Etsy,  please email billing @ etsy.com to discuss paying your bill and reinstating your account.

NOTE: Sellers who have a balance of less than $1 (the payment of which can't be processed) will not be sent to a collections agency...

full announcement: http://www.etsy.com/storque/etsy-news/bi...tion-2898/

[bargainbloodhound]

Sellers who have a balance of less than $1 (the payment of which can't be processed) will not be sent to a collections agency

The cost of sending a $2 bill to collections should do wonders for Etsy's bottom line.  :

[amy]

[quote author=bargainbloodhound link=topic=18762.msg73445#msg73445 date=1228700983]

Sellers who have a balance of less than $1 (the payment of which can't be processed) will not be sent to a collections agency

The cost of sending a $2 bill to collections should do wonders for Etsy's bottom line.  :
[/quote]

Mad Collection Agency charges a 50% commission on debts under $75 so they could still recover $1 of the $2 debt. Subtracting Etsy's internal costs of processing the account from the $1 would leave them a few pennies which is better than nothing. 

Would I send a $2 balance to collections?  The answer: NO.

[sneakymagenta]

over $10 > collection agency
under $10 > dog poop in the mail