If a borrower refuses to pay we recommend the following:
Send a copy of the Authorization Agreement certified mail, signature required, with a letter reminding the borrower the contract is legal and binding that you are aware that the check has been released. State in the letter that per the contact they have five days to send the agreed fee or the matter will be referred to small claims court where upon the borrower will also be liable for the court costs.
We have added several reminder letters to help you in your collection efforts. Remember to send all "reminder" correspondence certified, this step will help you win your court case if it comes to that.
Keep in mind, that while most states will not allow you to file a small claims suit against someone who lives out of state, you can file your case in the other party's state. Filing an out of state small claims suit requires a bit more diligence and patience than filing within your own state, so make sure to check the law in both your home state and the state you are filing in.