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The rich have a new pastime: not paying bills. Once reserved for the hard-up, it has now become the domain of the wealthy who, because of reduced circumstances, can't, or simply don't want to, pay their bills.
Saudi princess Maha al-Sudairi recently made the headlines when she ran off leaving a £60,000 bill for undergarments unpaid. She did the same to 30 other French businesses.
When the money was rolling in, we were all good at rolling it out again. Now Londoners (who can be more anonymous and are therefore more slippery than their country counterparts) either don't pay their bills or reduce the fees on principle.
"I haven't been paid a bonus for two years solid," says a banker at UBS, "so I don't see why I should be paying my personal trainer the same as before."
The worst hit are those in the building profession. "We have a very strange policy where legally we have to keep going with the job even though the client is no longer paying," says top London builder Al Maltby, whose clients include Jasper Conran.
Builders are going bust in their droves because they effectively lend the client money, meanwhile paying their contractors. If they don't get paid, they're landed with the debt.
Paying bills late is almost as destructive as not paying them at all. Peter Grabham, a project manager whose clients include Ruby Wax, Hugh Grant and Liz Hurley, says trouble starts when the regular monthly fee arrives late.
"As professionals, you don't want to make a fuss. This is the first mistake. When clients see late payments are not being chased, it escalates, and then it is not one account outstanding but three, four, five ... Sure, there is an unprecedented recession going on but some people are using it as an excuse to delay payments, or not paying at all."
Suing is considered a worst-case scenario (lawyers benefit but no one else). "We sued a non-payer once and the money I received (through settlement) was dwarfed by the legal costs," says Grabham.
"With their resources and access to London's top lawyers, it's a brave move to sue. I have to admit to writing off fees in the past precisely because of this."
Foreign clients are even more difficult to sue as different laws can be involved.
One top London builder is owed in excess of £700,000 by two clients, who just decided not to pay. In both instances, the clients have the resources to spend months in court.
"I can now see a cold shower of ice in many of my clients," he adds. "Every Englishman has it in him." You just need a recession to bring it out.
Another builder with several clients on the rich list says he is being blackmailed to reduce a bill by £50,000 or, he says, "the clients will make us wait four weeks for payment and deduct a further £25,000.
We had a quantity surveyor in place but the clients know we can't afford to wait four weeks." He has no choice, or he will go bust.
The situation is so dire that London service providers are refusing to deliver goods or services unless paid upfront.
"Our kitchen company now demands 100 per cent before they supply the kitchen," says Maltby.
A friend who threw an 18th birthday for her daughter was asked to pay the DJ in advance, even though she had never seen him before.
Even my sons' tennis teacher demands lessons are paid for first (so there is effectively no way to cancel).
The onus is now on the wealthy consumers - as opposed to the providers - to get their money back.
A French art dealer friend says he used to lend expensive paintings to good clients. Now he wants a credit check, bank transfer and insurance forms settled first.
The other new recession game is "borrowing on appro" - in some cases, though, the goods never come back or only after being used.
"I now as a policy won't release goods to certain clients unless they have paid in advance," says Lulu Lyttle, of bespoke furniture shop Soane, whose clients include Mick Jagger and Charles Saatchi.
One client borrowed a whole living room's worth of furniture, including lighting, which she installed, used over Christmas and then sent back. Another borrowed a silver dinner service for 18, then returned it dirty. Lyttle now operates a blackball list.
Londoners justify their bad behaviour by insisting that they are also being short-changed financially at work, but hard times are exactly when we should maintain our highest standards, says Professor A C Grayling at Birkbeck College, University of London.
"It's a matter of fact that when times are good and we feel flush, we can afford to be ethical," he says.
"When times are hard, we take short cuts. This is when you find out what people are like. It's when things are the hardest we should hold on to our highest standards."
Those who justify their bad behaviour to themselves (known as moral disengagement) are on a slippery slope - look at what happened to the politicians who justified cheating on expenses.
Bills no longer arrive as gentle reminders. They read as threats. My garden maintenance company recently fired me for not paying my bills fast enough.
Cosy relationships with our neighbourhood fashion boutique and builder are a thing of the past. Handshakes are dead. Now it's war.
Reader views (20)
When you've got enough credit rolling it, what do you want to pay your bills for? Just for the hell of it? I don't think so!
- Terry Byrne, Ealing, London.
How come do you have so many things and services sold on credit? We, in uncivilized Russia, have paper deals on next to anything except for clothes, and everything is prepaid. All delays and debts are courty though messy, and usualy at no doubts the one who actually was goods-credited and did not pay the deal, would not have a tack without a prepaiment in future.
Have to pay for tennis ahead? Then, if in need to cansel, phone to trainer a day before and move the class! What a big troble! Or it's obvious that both sides are totally unfit to reality.
- Katie, Russia, Moscow
Wasn't it Princess Michael (Princess Pushy as she was known as then), back in the 1990's who had a reputation for not paying her bills? The local delicattessens etc didn't actually want her custom as she would order and order, but never pay!!! Nothing new here, apart from the fact there are now more rich people I guess, so more of this nonpaying of bills. Blaming others is dillusional, you must have your own standards and live buy them. I sold my flat to clear my debts fully and have just reached a 'fair' credit rating after 12 months. I think this sort of nonsense catches up with you in the end otherwise. Bernice
- Bernice, London
There's nothing new about this at all - just read some 18th century novels, where the 'Quality' do nothing but run up huge tradesmen's bills they have no intention of paying, and then wonder what's hit them when the bailiffs come calling. Just apply stringent billing and payment terms to all clients and let them know you WILL sue if they don't cough up - oh, and make sure that notice of the proceedings hits the celebrity press and gossip columns and their bankers are aware so it affects their credit rating. It's also a naive mistake to assume that because someone lives in a plush apartment in an expensive part of town that they have the money to back it up - often they don't. Your modest neighbour with an old banger and a down-to-earth attitude is far more likely to have the cash, simply because they haven't blown all their assets to look good or acquired everything on credit.
- Londonlass, London
Not paying for services given is STEALING.
And if money is short, what on earth is that chap doing with a personal trainer at all? Just go for a run in the park, it's free.
- Kitty, London
Dear Keith Price,
Where did you go?
I'm probably going to have to sell up anyway so in that case I'm getting out. Looking about for nicer places to live.
- Thalia, London UK
As usual the wealthy are untouchable. The average person, ekeing out a living, would be hit with a bad credit record and years of misery if they behaved the same way. Always one rule for some and one rule for others.
- Melanie, milton keynes, bucks
A 'new pastime' - don't be silly, how do you think they got rich in the first place ? If you want to know about the rich and bill-paying, ask any country vet who has always owed him most, and for longest...
- Bob Unitt, Lampeter, Wales
It IS time, people providing services and trades people started charging less against the recession background. They continue to charge the same rates they had in place before the recession came along. This is greediness and stupidity and they don't deserve to stay in business.
- Raymond, Poole
If you are forced to accept a lower amount under economic duress the courts will find that the original amount is still due and can be recovered subsequently - D & C Builders Ltd v Rees is your case.
- Andy Davids, London
Dear old Oscar Wilde couldn't have made this up!
- Anil Chatterjee, Manchester
If you accept a reduced amount solely so you can get paid something to avoid going bust, and the client is made aware of this, your new deal may be voidable due to duress. You can then sue for the difference having already banked the part payment.
- Kevin Lynch, London
All Londoners have to do to get this sorted is what I did. Sell their home and move to a cheaper county with cleaner air and nicer neighbours. I dont LIVE in Luton, incidentally, just work there
- Keith Price, Luton, England
"I haven't been paid a bonus for two years solid," says a banker at UBS, "so I don't see why I should be paying my personal trainer the same as before."
I haven't had a bonus in 2 years either, perhaps I should stop paying my bank as much money for my mortgage?
- Bob, Cheam
Weathly Londoners being even more tight with their money, why do you think their rich in the first place...Poor dears having to pay for services and goods before using them... ah bless
- Dac - Ealing, London
What is all this patent nonsense about lawyer's fees if you take miscreants to the county court?
It takes less than ten minutes to place a claim - do it yourself. NO FAT-CAT LAWYERS NEEDED.
I HAVE NEVER LOST A CASE IN THE COUNTY COURT IN 45 YEARS.
- Reuben Camara, Republic of Morecambe, UK
Bills? I assume it was gas & electric not, pampering services.
I do feel it for the builders, these high-enders always prance around thinking their space is never big enough and act like their wallets are vast like Hyde park.
I just wonder…Are these people truly rich, or are they living on the power of their address or job?
- Jade, London, England
The rich rarely pay their bills on time....but they are no longer rich I cannot get a simple plumbing job done in Chelsea for under a £100 I have a tiny pension I am not rich Maybe everyone should reduce the ridiculous amounts of money demanded for work and they will get paid The days of people paying over the top for services are gone Time the tradespeople, the over expensive shops the greed of landlords..shops closing everywhere...are over Wake up everyone
- Sheila, london uk
"I haven't been paid a bonus for two years solid," says a banker at UBS, "so I don't see why I should be paying my personal trainer the same as before."
so you are expecting the same service but for less money. UH WHAT DO YOU THINK YOUR EMPLOYER IS DOING!
stupid idiots.
- David M, London Town
A dishonest Saudi Princess?
Nah, you are making it up surely?
- Kedge, wilts, england
