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Business Debt/Gave a supplier a $12000 deposit, did not deliver goods

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Expert: - 11/10/2008


Question
On march of this year, we gave a purchase order to a supplier that we have dealt with in the past.  We have not had any problems with them.  They purchased from us before.  The purchase order that we gave them was in the amount of $254,500.00.  They required a deposit, which we agreed to a $12,000 deposit for the goods.  The deposit was sent in the form of a bank wire.  They did not deliver.  We were in touch with them and they kept on saying that it is delayed.  We have emails from the supplier stating that they will wire the money back to us, which they never did.  We have spoken to them over the phone in June, but have not been in contact since.  They are avoiding my calls.  I have all the busines owners personal information, but cannot get in touch with them.  I would like to know what the right way is to proceed on this.  I already have a collections agency on it, but I would like to file a legal claim against them and dont know where to go for that. We are located in new york, the wire was sent to a Houston Texas company.  The invoice was from an Arizona company.  The owner live in houston, but business is in arizona.  
Thank you

Answer
Ricki,
Since you have placed the account with a collection agency, first talk to them and find out the status and if they have had any responses or activity on this account.  If nothing meets your satisfaction, such as a plan for payment or a promise for payment, I would immediately pursue legal action.  It is imperative that you do not wait, every day that you wait, makes the chances of you getting your money back less and less.
Bring all of your paperwork to an attorney, since the amount is more than you can sue for yourself in small claims court.  
Good luck and act now!

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Michelle Dunn

Expertise

As one of the Top 5 Women in Collections, one of the Top 50 Collection Professionals, and winner of the Business Excellence award, I can answer any questions about debt, debt collection, improving business credit, creating a credit policy, enforcing a credit policy and collecting on past due accounts. I can also answer questions in regards to starting a debt collection agency since I have been a bill collector for over 24 years, started and ran my own collection agency for 8 years, and maintain my 12 year old Credit & Collections Association for members of the credit & debt collection industry. I am also the author of the popular and award winning book "Starting a Collection Agency, how to make money collecting money" now on it's 3rd edition. This book has won a the Writers Digest self published award as well as the New York Book Festival Award. I am a repeat contributor to the Wall Street Journal, and have been featured on NPR, CNN, as well as many other national radio and television programs. I have also been featured in national publications such as the Wall Street Journal, Forbes, Smart Money, MSNBC and much more. I have 17 published books to my name and am an accomplished speaker and consultant. I currently write 9 columns for newspapers, magazines and online portals worldwide.

Experience

I have over 24 years experience in debt collection, I started and ran my own collection agency for 8 years and I am the founder & owner of my Credit & Collections Association that I founded in 1998. www.credit-and-collections.com

Organizations
My Credit & Collections Association, I was also a member of the American Collectors Association and Plymouth Chamber of Commerce for 11 years. I am a member of many writing groups as well as my local Women Inspiring Women chapter. I am a member of Know More Media as an expert for their blog on business credit.

Publications
Business NH Magazine, Smart Money Magazine, MSNBC, CNN, Forbes.com, The Wall Street Journal, Home Business Magazine, Entrepreneur Magazine and website, many books, newspapers and television programs as well.

Education/Credentials
I have written 17 books in my collecting money series and one for Entrepreneur Press called the Ultimate Credit and Collections Handbook. My newest book is being published by John Wiley & Sons in May titled, The Guide to Getting Paid, how to weed out bad paying customers, collect on past due balances and avoid bad debt. This book is also being sold to many colleges as a text book.

Awards and Honors
My book Starting a Collection Agency, how to make money collecting money won an award from Writers Digest and the 2007 New York Book Festival in the "How to" category. I have won 2 awards from Dun & Bradstreet and Governor Jean Shaheen. I was nominated as one of the Top 5 Women in Collections twice as well as having been selected as one of Collection Advisor's Top 50 Collection Professionals by my peers.

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