IRATE client demanding a refund. What do I do?

[whatdoidonow11365]

I am in NY.

I help people fill out and gather documentation to submit to the government (I won't get any more specific that that because it's a really niche industry). Success in clients' cases is determined by how quick the government works and processes their applications.

In order to do this, I work with a partner who assists clients on the ground while I do the behind the scenes work like gathering files, documents, translations, legalizations, etc to make a complete file for them to hand off. We work together as a team. All clients sign an explicit no refunds clause because we simply can't be responsible for how quick or how slow the government is. The contract goes into great detail about how if there is any delay, they agree to hold us harmless because we are not responsible for what the government does after it's all handed in, and all we do is help them hand it in.

Anyway, the client is not happy with our service (because the government took too long). She showed up at my partner's office, screaming, and pulled her application. She then tried to do her own application and failed miserably. The kicker? All the other clients we helped around the time we helped her have already been successful. Had she just waited...

She made a bunch of wild accusations which I investigated re: my assistant and are totally not true. I took them very seriously and investigated them thoroughly. They are 100% unfounded. Now she is e-mailing me saying I engage in nefarious business practices, cautioning me not to continue on my professional path, and stating she demands a refund. It's such a niche community that she may potentially damage my reputation by speaking out.

How worried should I be? And, what happens if she sues me? I am incorporated as an S-Corp. Should I respond to her e-mail? If so, how?

Thanks!

 

[Zigner]

Generally, anyone can threaten to sue, but few do, particularly in light of a valid & binding "no refund" clause in the contract. Having said that, how much money are we talking? Perhaps you can negotiate a partial refund? It's really up to you how hard you want to dig in your heels on this.

 

[whatdoidonow11365]

$2700. And thanks for the response!

Do you recommend I respond to her and refute her claims?

 

[Zigner]

$2700. And thanks for the response!

Do you recommend I respond to her and refute her claims?

I assume that you've already done so and she didn't like that answer...it's now your choice on how to proceed:

You could ignore her.
You could tell her that you refuse to refund anything with no explanation.
You could tell her that you refuse to refund anything and repeat the prior explanation.
You could offer a partial refund.
You could offer a full refund.

 

[Taxing Matters]

Should I respond to her e-mail? If so, how?

Thanks!

This really isn't a legal matter. This is a business decision. You either stand on your no refund policy and tell her that (and then not engage her further) or you engage in negotiations to try to satisfy your upset customer. Sometimes even though you don't have to, it can make for good business to provide a partial or full refund for customer relations purposes. Whether that is the case here I don't know — you know your business far better than I do. What is it that will put your business in the best position not only with this customer but with customers in the future? Make your best business decision and go forward.

 

[not2cleverRed]

This really isn't a legal matter. This is a business decision. You either stand on your no refund policy and tell her that (and then not engage her further) or you engage in negotiations to try to satisfy your upset customer. Sometimes even though you don't have to, it can make for good business to provide a partial or full refund for customer relations purposes. Whether that is the case here I don't know — you know your business far better than I do. What is it that will put your business in the best position not only with this customer but with customers in the future? Make your best business decision and go forward.

All well and good.

I think OP's greater concern is the client's (potentially) libelous statements.

Perhaps it would be reasonable to offer a partial refund as an olive branch, followed by a cease and desist letter.

 

[quincy]

Of what sort of "nefarious business practices" is she accusing you?

Are you licensed?

 

[LdiJ]

Of what sort of "nefarious business practices" is she accusing you?

Are you licensed?

How do we know if licensing is required if we do not know the industry involved?

 

[Zigner]

How do we know if licensing is required if we do not know the industry involved?

We don't - which is why the question was asked.

 

[quincy]

How do we know if licensing is required if we do not know the industry involved?

Knowing what the "niche" industry is could be helpful. Whatdoidonow seems reluctant to disclose it, however.

 

[LdiJ]

Knowing what the "niche" industry is could be helpful. Whatdoidonow seems reluctant to disclose it, however.

Exactly, therefore knowing whether or not he is licensed is kind of irrelevant. If he comes back and says that he is, it is not going to help us give him good advice.

 

[quincy]

Exactly, therefore knowing whether or not he is licensed is kind of irrelevant. If he comes back and says that he is, it is not going to help us give him good advice.

I don't think it irrelevant. If I did, I wouldn't have asked it.

If whatdoidonow is concerned about the client speaking out and harming his business reputation, it is important to know if the client actually has ammunition to use against him.