Legal to blackball clients?

[Bob777]

Many businesses can get a credit report on a potential client so that we might be able to determine if we want to do business with that potential client or not.

Here is a slight twist on the credit reporting agency:

I'm associated with a computer newor company. So why can't a large group of computer professionals, within a geographic area, form their own "credit reporting" association?

That is, if a computer professional or business in that "credit reporting" association has a client who will not pay for work that was done (or is just a problem client), the computer professional or business could then list that client's business name on the "black ball" list, for all in their own "credit reporting" association to see.

So, when that client goes to anyone belonging to that association for more work on the system, which was installed, but for which they didn't pay, then no computer professional in that area will take them on as a client.

In other words that client is "black balled" until that client pays the money they owe.

With the client's system down and no one who will work on it until they pay, I would think this would be a great benefit for all of us computer professionals and busineeses concerned.

Any ideas on this?

Thanks,

Bob

 

[ALawyer]

There is a fine line between (1) a credit reporting agency and a conspiracy in restraint of trade and between (2) exchaning information and creating a coercive group boycott.

I am not sure what side of those lines you plan to be on.

If 1 reporting member was not paid that well may be because the member was a crook, or did shoddy work, or did not meet deadlines. (All programmers as a class are not necessarily capable or honest.)

Even if the customer was totally wrong and corrupt, and had not paid hundreds of firms, that does not mean it will deter the next programmer from doing work, regardless of what the reporting agency would say, as often people think they will be treated differently. Or the next guy could demand payment in advance. That would not help members recover money owed. However, your filing suit against the deadbeat, and sharing the papers filed -- and only that -- with others, may have some impact.