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Client is not releasing funds.

riz80
Active Member
Rizwan M Member Since: Feb 1, 2018
1 of 29

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.

petra_r
Community Guru
Petra R Member Since: Aug 3, 2011
2 of 29

Rizwan M wrote:

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.


Where did you get that idea from? This is not how disputes work.

riz80
Active Member
Rizwan M Member Since: Feb 1, 2018
3 of 29

Dear Petra,


Thanks for the reply. 
 What is my option when I have completed my work and requesting funds released from Escrow but client says they think the work is not complete. The incomplete task is something we have not agreed before they hired me but during discussion after the hiring process was complete.

I am a bit comfused and a bit more pressed due to this case and in panic as well. I have been in the market since more than a decade but my knowledge about disputes is quite limited as this is once in a blue moon with me to get along any such client.

 

prestonhunter
Community Guru
Preston H Member Since: Nov 24, 2014
4 of 29

Rizwan, I am very sorry about what you are going through.

This client is behaving unprofessionally, unethically and immorally.

 

I know that YOU would never treat another person in such a way.

 

I hope everything works out for you.

riz80
Active Member
Rizwan M Member Since: Feb 1, 2018
5 of 29

Thanks for your reply and wishes Preston. I am really feeling disrespcted once they said they can do it in a few minutes themselves.

prestonhunter
Community Guru
Preston H Member Since: Nov 24, 2014
6 of 29

Stand firm. I can assure you that they need you a lot more than you need them.

 

Of course you must always be polite, professional, and respectful.

 

But that doesn't mean you must work for free and do things that were not part of the contract.

riz80
Active Member
Rizwan M Member Since: Feb 1, 2018
7 of 29

Thanks Preston.

I am just wondering whats next? They are saying they think the work is not complete and I am requesting funds as from my side its all done.

I have offered a resolution asking them to pay me 80% now and hold the remaining 20% till the other task is updated which was not even my project to do.

My question is..if they dont agree on this resolution and still keep asking money refunded from Escrow, what option do I have then?

We have gone through the mediation and mediation advised me that client needs money back as they think work is not complete.

feed_my_eyes
Community Guru
Christine A Member Since: May 4, 2016
8 of 29

Rizwan M wrote:


We have gone through the mediation and mediation advised me that client needs money back as they think work is not complete.


Are you sure that this is what the mediator said to you? Mediators don't take sides or threaten to ban your account; they are only supposed to help you and the client come to an agreement. But if you think that an agreement is impossible at this stage, then the next step is for you and the client to pay $291 each in order to go to arbitration. 

riz80
Active Member
Rizwan M Member Since: Feb 1, 2018
9 of 29

Mediation said the client needs money back as they think the work was not complete.

My question is that client believes the work is not complete and I am saying the work is complete and I have offered them a resolution as well.

What is they dont agree on the resolution? Why should I return them 100% money while I have worked what they have agreed with me.

What you mean is that I have to pay $291 out of pocket to get to the arbitration? Which means if I get the whole amount from client, I will still be losing $291 and if client loses he will be paying an extra $291 in addition to the funds they have to give me. Is this what it means?



feed_my_eyes
Community Guru
Christine A Member Since: May 4, 2016
10 of 29

wrote:

What you mean is that I have to pay $291 out of pocket to get to the arbitration? Which means if I get the whole amount from client, I will still be losing $291 and if client loses he will be paying an extra $291 in addition to the funds they have to give me. Is this what it means?


If it were me, and I was sure that I had completed everything fully and correctly, then I would pay the $291. It's possible that if you do this, the client will simply give up, instead of paying $291 and running the risk of losing his money plus his arbitration fee; if he does, you'll get your $291 back plus the money in escrow. But there's also a possibility that the client is certain that he's right and he does want to pay for arbitration, in which case yes, you'll both lose your $291 fee no matter who wins the case.

 


@riz80 wrote:

Mediation said the client needs money back as they think the work was not complete.


That means that the client thinks your work was not complete; it's not the mediator's personal opinion and it doesn't mean that the mediator agrees with the client. They are not allowed to take sides, that's why you have to pay for arbitration if you can't come to an agreement with the client.

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