Client is not releasing funds.

[#1]

Hi All,

I have a situation ever first time in the history of my freelancing. I have been hired by a client for 10 tax returns. I have prepared the returns and showed him before filing. He was all happy and said the tax amounts are looking exactly what he was expecting.

Once I have filed all the returns and sent him a request for release of funds, he is never happy paying me but rather delaying my payment tactically. Asking me to do what was not agreed in the project and pushing me and blaming me on the stuff he was doing himeself. Like he made payments from his bank to the tax authorities and delaying me that department has deducted more amounts from his bank and he will release my payment once this is back to his account. 

Then again started asking me to get his surcharges removed from his account and he will pay me after that. This was not agreed BEFORE he hired me and everything is in our chat discussion.

I have started a dispute against him for the payment and now he is asking the money from Escrow refunded to him as he believes that the work was not completed. In case, I dont refund him 100% , Upwork will block my account.

Is there someone who had gone from such situation and able to advise what is my rights and what I can do to be paid? Client is in the belief that he can do the same task in a few minutes and i am charging him higher and as the surcharges are not removed from his account, he thinks the project is not complete so need his money back.

I am looking for comments and advice from all community members.

[#2 · Accepted solution]

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Rizwan M wrote:

you think I can withdraw fund leaving $291 in my Upwork account (Arbitration fee in case thats needed) or should I wait with that as well?

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How would you pay the client if you were to lose arbitration or if Upwork decide the funds should not have been released? Usually funds in escrow are frozen once a dispute starts.

I've now said "Don't do anything" a number of times. If you want to withdraw that money, withdraw it, but personally I would wait! 

[#3]

Hi All,

This ticket is closed today. I have offered client a concession of $170 which Mediation team asked me to refund and they have communicated to client that this ticket is being closed as client did not pay Arbitration fee. He was asking for $200 though which I have declined. 

I have saved Arbitration fee of $291. Even if I were paying Arbitration fee and winning the case, I would be losing $291 so I had planned to offer him $170 which was ultimately accepted. 

I have closed the job and had also left feedback for him to make sure all future professionals can work with peace of mind with such clients. I had smelled that his main issue was to get some concession and thats all. I knew I will win the case if this goes to Arbitration but I had to lose $291 in that case. 

Mediation said they will terminate the job. What does it mean? Does it mean that they will close the ticket or it means something else?

In the end, I am very much thankful to all of you as this was my ever first experience going to such mediation and I have learned a lot from your precious advices.



Rizwan

[#4]

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Rizwan wrote:

I have saved Arbitration fee of $291.

I don't think you saved $291. A client who goes that far over $200 will NOT spend $291...

Had you paid the arbitration fee, the client would not have done, you'd have gotten your arbitration fee back and that would have been the end.

That said, at least the whole thing is now over!

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Mediation said they will terminate the job. What does it mean? Does it mean that they will close the ticket or it means something else?

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They will close the contract.

[#5]

You are right Peter. But I am just seeing the other side. If in case, he would had paid the Arbitration, I would be losing at least $291. He was asking for $500 back so I thought he may go to Arbitration.