Wouldn’t it be easier if the people we were trying to collect from were simply million or billionaires? They would surely pay their bills on time because they definitely have the means to do so! Actually, that’s not entirely true. You might even be better off in your collections process with the businesses you are working with than collecting from billionaire celebrities, since some of them don’t pay their bills either.
Some celebrities unpaid bill scandals have been forefront in the news for all to see. Here we highlight 5 of those celebrity scandals.
Tori Spelling is heir to the fortune of her father and famous T.V. producer, Aaron Spelling. However, Tori didn’t receive much of the multi-million dollar fortune, in fact only $800,000 of it. In January of 2016, AmEx sued Tori for not paying off her credit card debt. They claimed that Tori never made a payment for months, resulting in a $39,000 debt. She was forced to pay back her full balance of $37,981.97. In addition, in July of 2016, Tori and her husband her hit with a tax lien for $259,108 from unpaid state taxes in 2014.
Nicolas Cage is a well-known actor for starring in many hit movies. However, this didn’t disclude him from appearing on a list of celebrities with unpaid bills. The IRS hit cage with a $6.2 million tax lien in 2009 and he was forced to foreclose on a few of his properties. His money manager claims that the actor spent over $33 million on vintage cars, yachts, 15 homes including European castles, rare art and jewelry.
Famous R&B singer and Grammy award winner Toni Braxton had to file for bankruptcy protection twice. She reportedly owed companies like AT&T, Tiffany and the Four Seasons a combined $50 million. Much like the rest of the celebrities on this list, the IRS has filed multiple liens against Braxton for unpaid taxes.
Stephen Baldwin has been making a lot of noise in the headlines lately for his political feud with his brothers Alec, Billy and Daniel. However, the actor has made headlines for unpaid bills, as well. In 2009, Baldwin had more than $2 million in debt, including $70,000 in credit card bills. He was forced to foreclose his home and file for bankruptcy. In 2012, he also ended up facing charged on state income tax evasion of more than $350,000.
The actress and child star Lindsay Lohan was in the news in 2012 after a letter leaked from the Los Angeles Hotel, Chateau Marmont. The hotel banned Lohan, claiming that she owes more than $46,000 after spending 47 days at the hotel while filming a Lifetime Movie. Lohan stated that she believed the movie producers would be picking up the bill.
In b2b accounts receivable, we may not be working with celebrities who choose not to pay up, but you could be working with big name brands that would receive just as much publicity as these celebrities. That publicity could work in your favor, but many times were just trying to collect from small and mid-size companies. For these cases, it is best to simply follow credit and collections best practices to get the job done.