Is Social Media more effective than Debt Collectors ?

A Minneapolis based company that is in HR space has not paid its bills and could be in financial trouble. After almost a year, they have pretty much gone cold on any responses. Although, they are still operating as far as I can tell.

What would you do? Social Media would be good to inform others of this company and prevent any future occurences.

Comment by Tim Spagnola on October 28, 2011 at 11:26am: Suresh - I can certainly understand your frustration, but I guess my question would be what would you hope to benefit in pushing such a message? I get that it would be a warning for others, but is there any chance it can come back to hurt you in anyway?

Comment by Suresh on October 28, 2011 at 11:58am: Tim, that is my dilemna. I don't necessarily want to hurt the company, rather get paid. I have had a good relationship with them for a few years, so definitely gave them the benefit of doubt. I have stopped providing them any service for now and dont' expect in the future unless things completely turn around.

In my experience, in such circumstances, there may be others who are going through this with this company, but the info is just not out there. If anyone wants info, feel free to email me.

Comment by Tim Spagnola on October 28, 2011 at 12:10pm: Wow- tough spot Suresh. Sorry in general that you have to deal with something like this. Good luck to you.

Comment by Sandra McCartt on October 28, 2011 at 12:17pm: I would invest in a demand letter from an attorney if they have ceased responding. Make an offer to set up a payment plan for them.

I think you might be at risk of action on their part if you launch something on social media. But perhaps you might put something out there in terms of a question asking if anyone else is or has done business with them without saying why. If they owe other people other creditors may contact you. Since they have gone a year without payment and will not respond it is unlikely that anything but legal action will get you paid and then, is it worth the cost.

You might check with the better business bureau in their location to see if others have filled complaints or the credit bureau if you think that information might help.

Comment by Suresh on October 28, 2011 at 12:31pm: Sandra, thanks for the valuable suggestions. I did try BBB, no info there and they wouldn't pursue the particular scenario I am in (not sure why).

Just another aspect of running any business I suppose..Have a great weekend

Comment by pam claughton on October 28, 2011 at 12:40pm: I would just call and email them daily until matter resolved. I've found that the squeaky wheel always gets paid. :)

Comment by pam claughton on October 28, 2011 at 12:44pm: Are they local? I've also found it very effective for some reason to offer to come by and pick up the check. When they realize that you're not going to go away when they ignore you, it may put you at the top of the pile....so you will go away. They really don't want you coming by in person to pick up a check, so just offering to do so may get the check in the mail. Good luck!

Comment by Suresh on October 28, 2011 at 12:57pm: Pam, I am in Michigan. I could call them and hound, conveniently they are tough to reach on the phone. When I could reach the CFO, the answer would be that check will be cut this week. So now the weeks gone by for a few months.

The signs of this was there almost 9 months ago, I didn't quite see it. Two of my contacts in accounts payable quit or left.

It just bugs me a lot, thankfully doesn't kill me.

Live and learn I guess. Thanks though.

Comment by Chris Riopelle on October 28, 2011 at 2:28pm: I've had the same issue with client in Canada (not sure if the same rules apply in the US) but I had a lawyer send a letter with a proposed plan. That didn't go anywhere but it did help my case when I filed the court papers. It cost me $140 to deal with the courts but the matter was resolved shortly after they received their notice to appear before a judge. Needless to say, I we won't be doing business with them anymore but I'm certain that ship had already sailed. Good luck.