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Vendor calls my clients.

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csdd

Junior Member
What is the name of your state (only U.S. law)? Arizona

I have a shirt company and we use a Vendor for doing our Embroidery work. Yesterday I get 2 phone calls from my clients saying that a company called them, my vendor, to tell them that they have not been paid by me and just want to let them know what type of business I am running. Both of these clients are some of my bigger clients so far. I have only been in business for a little over a year.

One of the clients who I am just finishing there last part of a huge order said they are not paying me, but sending the payment to the company that called him since they did the work, not me.

First of all, I have paid everything to this company. I have to before they ship to me or before I can pick it up.

I called the vendor this morning and they told me that because I have not paid they had the right to contact the customer to let them know. Even if I had not paid them, why would they not call me first. I have the cleared checks that are proof that I paid them. When I told them that, they said it is not in our records which means I have not paid for the work. The fricken invoice I have is signed and dated by the lady I was talking to when I picked these orders up.

What should I do to handle this. Is this considered slander? I am hoping I don't lose my client from it or any other business from the my client telling others about it.
 


Zigner

Senior Member, Non-Attorney
Explain to the clients that:

1) You have paid and you are working on resolving the issue the vendor has with their records.
2) You expect to be paid as per your contract with the client.


ETA: Find a new vendor too.
 

LdiJ

Senior Member
Explain to the clients that:

1) You have paid and you are working on resolving the issue the vendor has with their records.
2) You expect to be paid as per your contract with the client.


ETA: Find a new vendor too.
Seriously! Their behavior is totally unprofessional. Particularly when presented with information that you HAVE paid them.
 

quincy

Senior Member
What is the name of your state (only U.S. law)? Arizona

I have a shirt company and we use a Vendor for doing our Embroidery work. Yesterday I get 2 phone calls from my clients saying that a company called them, my vendor, to tell them that they have not been paid by me and just want to let them know what type of business I am running. Both of these clients are some of my bigger clients so far. I have only been in business for a little over a year.

One of the clients who I am just finishing there last part of a huge order said they are not paying me, but sending the payment to the company that called him since they did the work, not me.

First of all, I have paid everything to this company. I have to before they ship to me or before I can pick it up.

I called the vendor this morning and they told me that because I have not paid they had the right to contact the customer to let them know. Even if I had not paid them, why would they not call me first. I have the cleared checks that are proof that I paid them. When I told them that, they said it is not in our records which means I have not paid for the work. The fricken invoice I have is signed and dated by the lady I was talking to when I picked these orders up.

What should I do to handle this. Is this considered slander? I am hoping I don't lose my client from it or any other business from the my client telling others about it.
It could be considered defamation, if you paid the vendor and the vendor told your clients you did not. It might also be tortious interference.

In the future, you should not allow your vendor to have your client contact information. There is no reason why the vendor should need to contact your clients.

Whether there is any legal action worth considering could depend on what happens now. If you suffer economic losses from the statements made to your clients by the vendor, it might make sense to pursue an action against the vendor. But facts matter and you will want an attorney in your area to personally review all of these facts to determine this better.

Zigner has offered good advice in how best to handle your clients. There are several ways to handle the vendor (including eventual termination of his services), but directly contacting the vendor to allow him the chance to explain his actions might be a good start. You can involve an attorney if you cannot resolve the problems you are having with the vendor and if you discover the vendor's comments has impacted your business with the loss of clients.

Good luck.
 
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csdd

Junior Member
Thanks for the suggestions.

I have called my clients like Zigner suggested. The one is still pissed at me about it, but he is coming in tomorrow to pick his stuff up. Hopefully speaking with him face to face will be easier than over the phone.

I never gave my clients contact info out. The one client asked how they got their information and was told that they knew the company name and they googled it and got the number.

I am getting ready to head to Wells Fargo (my bank) to meet with a banker their and we are going to call the vendor. The checks were both deposited into a Wells Fargo account so this should help me.

It's just frustrating. I dont understand it. I could possibly see if they were trying to steal my business and get the client to go to them, but they do not deal with retail or average businesses. They are a complete wholesale business and only deal with others in the trade.

Also we are only talking about $180 for both clients worth of work. Not a huge deal, but for a smaller business like myself, it could be a big deal.

Again, Thanks for the responses.
 

Zigner

Senior Member, Non-Attorney
Why do you need to meet with a banker? Simply pull up a copy of your cancelled checks online and email the image to the vendor.
 

LdiJ

Senior Member
Why do you need to meet with a banker? Simply pull up a copy of your cancelled checks online and email the image to the vendor.
I can kind of see an advantage to doing it with the banker. They really seem to be disregarding anything he is saying and a neutral third party who really cannot be ignored might be to his advantage.
 

Zigner

Senior Member, Non-Attorney
I can kind of see an advantage to doing it with the banker. They really seem to be disregarding anything he is saying and a neutral third party who really cannot be ignored might be to his advantage.
Fair enough :)
 

csdd

Junior Member
Having the Banker helped. I called while there on speaker phone. At first the lady on the phone was very short with me telling me if I did not make a payment soon they were going to send out for collections. At this point, the banker spoke up and let them know who he was and that 2 checks had been paid to them, cleared and shows to have been deposited into another Wells Fargo account. He then asked if he could check their account to see if it was the account that they had.

We were put on hold for a few minutes and another lady got on the phone all nice and apologetic, She said that there was a mixup and for some reason another persons account was attached to mine which was in default of way more than the $180 I had already paid them. For some reason, I really don't believe her but if it stops this madness, then good. I got her name and a direct number for her, after asking multiple times, and asked her to call my client today and explain to him, that everything is good and I was in no way in the wrong.

I guess I will see what the client says tomorrow morning when he picks his stuff up. If they have not called him by then, I will call when he is here and have them talk to him.

One of the ladies at the bank says I should still contact a lawyer. I really don't want to do that. Mainly I just want to be done with it. I have more things to worry about than dealing with a lawyer and possibly going to court.

Thanks again for the advice.
 

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