MFG quote/internet contracts..fraud exposure?

[Sprew]

I am so done doing business over the net. This is the second time I have been stiffed, not to mention shipping cost. Anyone have any good ideas on collecting funds, especially out of state. Are there special laws. Would also like to hear some comments on how you determine if someone is on the up&up before starting the project.

Safety in numbers.

[gearsoup]

more info?
I have been looking into MFGquote. $400 a month is lot though....

[NC Cams]

Sure: ship COD.

That's what we do to ALL new customers or to customers who we have reservations about.

We've lost a lot of "business" via this attitude BUT at least we didn't get stiffed.

EDIT: unless the amount is HUGE or invovles the violation of a federal statue, you can't go after someone in Federal court which is what/where interstate fraud has to be resolved. Moreover, if you do go to federal court, you have to sue in the DEFENDANT'S court district. Just to file will cost you $350 or more.

You've been burnt twice as many times as I"d have allowed myself to get burned via bogus internet sales. Don't let there be a third episode.

[Geof]

20% deposit with order and then prepay or COD.

Have you looked into using a collection agency? I know in some States they can go after the debtor for the amount owing plus all the collection expenses.

[WayneHill]

Originally Posted by Sprew I am so done doing business over the net. This is the second time I have been stiffed, not to mention shipping cost. Anyone have any good ideas on collecting funds, ....

I have friends, who know some guys, that know some guys, that could help you.

Just give them their names and addresses and then 'forget about it'

This group of guys is everywhere. Where are the goons located? We's can send some friends overs ta talk to u'm.

[InspirationTool]

As a buyer I've been burned with CODs and will no longer accept them. The risk of getting crappy parts is just too high.

That said, I understand the need to put a deposit down.

I recommend working out a deposit/sample arrangement. I'm alot more confident when I have a sample in hand. Even digital pictures of a sample part help me. The other option is asking for references.

On my end, I've had to put alot of specifications in my RFQs that I wouldn't have thought of, like "damaged parts from improper packaging will not be paid for" and "parts may not have visible patches of dirt or grime and may not be sticky to the touch" and "parts must be deburred enought to be safe to handle".

-Jeff

[handlewanker]

Why don't you do as the retail trade does? Allow for a certain amount of loss and just add it to the product cost and recover it from the other customers who pay. It evens out in the end.
If you haven't allowed for "breakage" then who pays the bill?
There is no sentiment in business.
Ian.

[keebler303]

there is a service the postal service has available that I have heard is pretty good. The buyer gives money to the post office and then you go to your post office and pick up the money. If they try to screw you then it becomes a federal matter because it is through the post office. I will try to find the exact thing.

Matt

[keebler303]

Postal Money Orders are a safe, convenient, and economical alternative to sending cash through the mail. They can be purchased from any Post Office™ in the United States as well as from any rural route carrier. Postal Money Orders are available up to $1,000 with a daily limit of $10,000 per customer. A current government-issued or state-issued picture identification is required for money order purchases over $3000 in a single day. Other features include:

http://www.usps.com/money/sendingmon...rs/welcome.htm

Matt

[handlewanker]

Hey kebie, nothing is safe when it comes to paying up front. What do you do when you order a product, pay for it and then wait for a few months and the product never materialises?
Also the company selling the product refuses to answer emails. The rrrsole is one of your countrymen, deals on EBAY under the name 800watt, somewhere in California.
Ian.

[NC Cams]

Re: the "federal manner" in post #8.

If you think that stiffing someone via the post office results in federal protection and/or assistance with regard to collecting your money, dream on. The only protection you can take advantage of is to ship it by someone who will collect COD and use the "cash only" qualifier if they offer it - this prevents rubber checks.

"Stiffing" someone as we're discussing here is purely and simply a civil matter. The fact that you deal in interstate traffic COULD raise it to a federal matter (if bad checks were involved) BUT, for it to be contestable in Federal court, it has to reach a certain floor amount as prescribed in the FRCP (Federal Rules of Civil Procedure). I think the amount is $15,000 or more to qualify. If you go ANYWHERE and ask for help (as in police or FBI), they're going to probably tell you to take it to court as they consider this a civil matter that is out of their realm of involvement - even though grand larceny might be invovled.

Heck the filing fee in federal court is $350 so that alone makes it a case of throwing good money after bad to try to collect in some cases. Besides, you have to file in the defendant's jurisdiction which puts even more of a burden on the plaintiff. Unless you file pro se (not adviseable unless you're really good with the law), you have to find a lawyer who is registered in the federal court to act on your behalf - more cash pizzed away. It simply isn't worth going 'federal' for the small time claim. BTW, if the suit is federal and they are incorporated in Delaware, don't even bother.

The ONLY way you can get around this is if the person violated federal law AND the fines, penalties, awards, etc have an award provision that allows for damage awards that fall outside this "floor" amount to qualify for federal suit coverage. We're going on 2 years in filing such a suit (still haven't got the defendant before the judge) so don't think you'll have a timely resolution anytime soon.

Doing business has its challenges and even doing face-to-face business can be hard to collect. Try collecting on a bad check sent from someone out of state. Try collecting from a bad check passed IN state. Try collecting period.

If you deal with an in-state loss, you might be able to use a mechanics lein to tie up the defendant - some states put some real meat into their mechanics lein provisions. A friend nearly took posession of a guy's race car team and hauler over an unpaid bill that the organization tried to stiff him on - little did they know how many teeth were in the laws for the friend's state, that they coincidentally just had to go to race at as part of their traveling series. BTW, he got his money PROMPTLY when they learned of the consequences of a mechanics lein.

No matter what happens, you will become MUCH more conversant in the law as you try to collect bad debts from the scofflaw low life who try to stiff you out of your wares.

[ViperTX]

I'm with NC_Cams......enforcement of most laws is pretty tough to get anyone interested in enforcing.....small claims court and Mechanic's Liens are the best alternative. To use a Mechanic's Lien you need to get the information upfront.....where and what will this part be used on...if they are reselling to an end user.....it would be nice to know who that end user is...sometimes have confirmation of a sale & delivery and knowing if the buyer has property will help......it make eons to get your money back from a Mechanic's Lien....but they do work when attached to property (personal or otherwise).