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Wholesale account check BOUNCED


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What do I do? I have no clue what my rights are. I just got their check back. It was for over 3500 dollars. I paid our company American Express bill with that amount so then I owed my bank when it came back over a week later as being invalid. Hubby got paid over 2500 last week and we couldn't touch a dime of it. I had to draft everything from my daughter's savings and from mine to cover that and give us a few dollars spending money. Well, the wholesale company then gave me 600 cash. Even with that 600 cash, if you include the product he has received since the time of the check, he owes me over 3700 total (including the bad check). I told him he had 24 hours on Thursday to come up with my money. Today he called after avoiding us all weekend and said I will have my money in the morning around 10. In the past everytime he has said he'd have my money and to come by, he has NOT had it and only had an excuse. I need my money to pay my house note. Anyway, I called the bank (his bank) and they said the check is not good. How can he get the money from the bank if he has no money int he bank. So, I called him back and he said the draft is going through from one of his investors and he'd call me back if he could get me any money. I'm tired of screwing with this guy. I just got the check and I'm tempted to just say F this and go to the district attorney with the check. I'm tired of messing with this. I'm watching kids today or otherwise I would go pull ALL my stock from him. I have a contract with him stating I can pull my stock if he has not paid and he will owe me what he has sold at retail price. I think this is a bunch of BS. We started supplying him in September and have yet to get any money other than the 600 cash. What would you people do? Should I give him until tomorrow at 10 and if he has another excuse go to the DA or should I just go ahead and go and say it was theft of property. I am so fed up with this though. I would pull my stock if I didn't have extra kiddos today....GRRRRRRRRRR:mad: Anyway, any advise? This is my first wholesale account.

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Go tomorrow to see if he makes good on his offer to pay. If he doesn't make good, call your local police station and tell them you need an officer to go with you to recover property and you need assistance (we call it "Prevent Breach of Peace"). And withdraw your stock and then proceed to file a small claims suit against him.

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I just called my DA's hot check division. They said that I may never get my money if he does jail time. Anyway, they said I would need to come there and file an affidavat with them and bring the original check or a copy from my bank. He just called though and said as soon as he can get it is 9 in the morning and offered to pay any late fees occurred by our bank for our house note being late. It isn't penalized thank God until the 15th though. Anyway, the DA said to bring it there and they would try to recover for me. So, that is what I plan to probably do in the morning if he doesn't pay. I also plan to write up some type of contract (verbal one now but i'm putting it in writing) that from now on it is to be cash or cashier's check. Our current agreement only states payment by the 15th of the month for products received the prior month. If not by the 15th of the month then a 10% penalty on the balance is applied. If not by the last day of the month then I pull my stock and he owes me at retail price for all he sold (that way he doens't make money off of my product that he didn't pay for). GRRRRRRRR

Oh and I was told here in TX anything over 1500 is a felony.

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I don't know about your state law but here anything over $150 is a felony. I babysit for our prosecutors secretary and on a few occasions she has taken in checks for me. Some for as little as $20. Thankfully I have never had to actually go the distance with any of them, a letter from the prosecutors office prompts them to pay, but I would. I hope he pays you tomarrow but if he doesnt I would go to the prosecutors office.

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I'm so sorry to hear about your trouble and hope you get your $$!

I wanted to avoid this possibility from the get-go so I make my wholesale accounts buy via my website, which they pay with a credit card up front. Without knowing your situation I don't know if that would work for you or not but it's an idea.

Good luck!

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It must be the week for it...I got a $1500 bounced check. it was over the 10day waitin period so i used it...apparantly the 10 day doesnt hold true anymore. Then it took 2 days for the letter to get to me....now it was too late and now I bounced a few checks...ouch!

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Why would you continue to have a contract with this man given all this trouble? I would terminate the relationship at this point. Get your product and $$ due and cut your loss. Wow, some of your states have low minimums for felony charges, it's $1000 here.

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Well debscent, that's just it, because in my state he has given me 600 and I accepted that then it comes to be a verbal agreement that we have made payment arrangements and thus I can't take my product without due process. Well anyway, once I receive this payment, I won't do any business with him unless he pays upfront for the product before it is delivered or when it is delivered. I can always sell it to someone else and make more money if he doesn't pay me at that point, but that is what I am leaning towards.

See, there is MORE to the story. His ex manager was embesseling (spelling?) money. Several accounts were comprimised and money was missing. Two plus two didn't add up until they got an annoymous tip from someone and started realling looking into things and now the local PD is looking for the ex manager on forgery and other charges totalling over 27 thousand dollars. For 2 weeks, this guy was gone from his shop and this manager was in charge and lots didn't add up then and when he came back he was missing 9 thousand dollars. Because the mgr had been with him so long, the new manager got the blame and they looked to her first, which she also was stealing, but that is besides the point. Anyway, boils down to an inside job of stealing money led to all this crap and now he's having investors join in with him in order to pull him through. I heard this from more than just him so I take it as relevant. We shall see though.

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Large amounts of money over $2500.00 I only accept Cashiers Checks or a visa transfer payment. That might be something to consider. All my first wholesale accounts have to pay at the time they place the order. Any reorders that want to do a 30 day net have to have credit references and a visa number. Just a few things to consider. I hope you recover your losses.

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I sure hope you get your money!!

I'm a banker by day, and one thing I recommend to my clients who have been in similar situations as yours is to have them, the customer/wholesaler, wire the money into your business account first. Those are guaranteed funds!! There is usually a fee, but I would incorporate that into your pricing to your wholesaler.

Just another idea to give you some options in the future, but I sure hope you get squared away on this one! Good luck!!!!

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Sounds like a lot of drama, and I do hope it works out for you. All that embezzlement, etc. would make me nervous. Let us know what happens (I'm hoping you get your money and he lets your have your stuff and you can call it a day).

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How horrible!!!! I have to agree:

He sounds too shady to me. Sorry you are having to deal with this!!

I thought she said it wasn't the owner but the people working for him that stole the $9000.00. I wouldn't blame the owner for what employees DID!

It sounds like a sizable account with large order on a monthly basis. That's nothing to shake a stick it if making candles in your living.

Our econemy is mess right now. No way I'd pull a wholesale account right before the holidays. THAT'S THE BIGGEST TIME OF YEAR FOR CANDLES!

But I also wouldn't take any checks in the future from this business.

JMO Fire

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I thought she said it wasn't the owner but the people working for him that stole the $9000.00. I wouldn't blame the owner for what employees DID!

From the original post:

I told him he had 24 hours on Thursday to come up with my money. Today he called after avoiding us all weekend ... In the past everytime he has said he'd have my money and to come by, he has NOT had it and only had an excuse. ... Anyway, I called the bank (his bank) and they said the check is not good. ...We started supplying him in September and have yet to get any money other than the 600 cash.

That does not strike you as being shady?

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Well tomorrow is a new day and I will give him ONE last chance. I will let everyone know what happens. I know a lot has gone on as I have witnessed a lot of it. His fiance had a car wreck in the midst of all this so he's been out and in the hospital with her.(part of the reason we couldn't get our money) Did I also mention that while the fiance was in hospital, the 16 year old daughter of the fiance was picked up by PD for fighting and so that left him to deal with that to. Anyway, I have verified that the PD is involved so I figure I need to at least give him one last chance before I turn to my last resort of prosecution and/or small claims.

BUT I have learned a lot from this and I won't EVER operate a wholesale the same. I'll expect money up front and require a back up funding source such as a credit card, etc.

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