Etsy will begin using a third party collection agency to collect on overdue bills.
Source: This Storque article
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.
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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.
(This change was also mentioned in the Etsy Success email for Dec 2, which only goes to those who have opted in to that mailing list, but there was no separate Etsy New email sent about it.)


December 3rd, 2008 at 9:15 am
Hmm,
Why would this be sent as an Etsy Success email and not Etsy News??
December 3rd, 2008 at 9:24 am
Excellent point. This is definitely News - and should have been e-mailed (and/or convoed) to every seller account, regardless of whether or not they are signed up for any of the Etsy e-mails.This constitutes a material change to the rules, and hence to the contract that every seller has with Etsy.
I can’t really fathom why Etsy has so much trouble with communication. They just can’t seem to get it right.
December 3rd, 2008 at 12:08 pm
I have this deep feeling of discomfort over this step, simply based on Etsy’s appalling record on getting important info into the hands of those who need it. Are they now going to tarnish seller reputations by dumping them in the lap of debt collection agencies because a piece of their precious code or protocol is not up to scratch?
and before the cupcake eaters start whining, this has happened before and i’m not just grumpy hating for the thrill of it
PS: i just got a message from Dawanda today, celebrating their second birthday and announcing a special giveaway for buyers. This comes after a simple email asking if I would like to join the christmas selling promotion (if yes, then click here and that’s it all done). Why oh why does Etsy have to make things so convoluted and insulting?
December 4th, 2008 at 2:42 pm
I also do not understand why Etsy operates its “business” this way.
I had a thread about the lack of notice see here:
http://www.etsy.com/forums_thread.php?thread_id=5938665
It was moved by Etsy to another topic in the forums. Now it gets buried under a bunch of trivial posts…
Yes there is a simple solution, but as usual a legitimate, logical, substantial request like…”please send notice to your sellers of any changes or updates in etsy policy” it will get completely ignored.
So much of this would be avoided if Etsy staff/admin just acted accordingly and not be so sneaky about it.
And so many of those “cupcake” lovers are really making me upset. Their behavior towards a justified request and complaint is disgusting and insulting to me.
I am so very tired of it all. I am done with Etsy, I am moving on. There is another handmade ecommerce site that is just getting started, and there is more communication at this site. Concerns are addressed and handled properly.
-JJ & PaintedBull