***PICB*** PRINTING INDUSTRY CREDIT BUREAU ***PICB***
WHERE'S THE MONEY?
PICB'S PERIODICAL DEDICATED TO MAINTAINING PROFITABILITY IN THE GRAPHIC ART INDUSTRY THROUGH GOOD CREDIT POLICIES
PRINTING INDUSTRY CREDIT BUREAU 
(847) 265-0400
ISSUE # 15
JANUARY 2013
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Did you know: 200 years ago Benjamin Franklin stated the very essence of business success - "a penny saved is a penny earned." Imagine our business society today if instead of teaching thrift, Franklin promoted slothfulness and believed instead, "a penny is just a penny & nothing more, therefore why bother to save it today when later is just as good?" Thomas Jefferson was known to often say "don't put off 'til tomorrow that which should be done today." This is another core business principal that, when heeded, builds strength, but if ignored can cause destruction and financial devastation. Had Franklin, Jefferson, and others visionaries like them such as Alexander Bell, or Steve Jobs decided that 'tomorrow,' just like Jerry Garcia sang, "may be easier," what modern marvels would never have been discovered, and what genius would have been delayed, or lost entirely?

 

Procrastination is a profit killer to all industry, Printers included. Unfortunately many businesses consider credit granting procedures to be a low priority and, in turn, those companies sacrifice due diligence by saying  'we'll do it later.' Those same companies then wonder why they were not paid. Running a business with the premise that a credit policy can be done later when there is more time and more staff is akin to Nathan Hale shouting at you "the deadbeats are coming, the deadbeats are coming!"


Recently Toyota has issued its third recall in the last four years. According to CNN Money the initial estimates show a loss of over 2 billion dollars as of 2010, which does not even include the latest recall. Over 140 million pounds of adulterated meat was recalled between 1995 and 2000 according the USDA. A Canadian meat company lost over 100 million dollars in a recent recall according to the Edmonton Journal. Food recalls over the last 10 years have cost businesses billions which then, of course, trickled down to their vendors.  A Google search of baby product recalls provides pages of published recalls that have been issued almost daily for all types of products from baby seats to furniture, clothing, and high chairs. The one constant in all of these recalls was 'procrastination.' None of these companies felt the urgency to do immediately that which could be done later, and they lost billions.

 

In today's economy, where market shares are diminished and profit margins are shrinking, smart business people know the truth: If you wait, it may be too late, and you could catch a deadly form of 'procrastination interruptis!"

                                     

  PRINTING INDUSTRY CREDIT BUREAU'S QUICK CURE

 

Use Google to verify addresses, phone numbers, and other significant occurrences to identify potential problems.

 

Use 'whois' to verify ownership of the domain name being used by your customer. Verify when it was established and last updated.......if the site's information is stale, could your customer's business be troubled?

 

When seeking information from references, you don't really care how well the customer is liked; you want to know how they pay their bills.

 

Non-responses by references should be treated as negative and should factor into your credit granting policy.

 

Verify business registration and ALWAYS remember, newly formed businesses are always higher credit risks.

 

Identify if your customer has a history of prior businesses that may have failed and ask can this company be just the newest resurrection with all the same old problems?

 

Don't procrastinate!

Call PICB or visit our website today for assistance in all of your credit and collection needs

 

 

WWW.PICB-US.COM

 

 DEWEY CHI'TING
LARSON  NY 
january cartoon
ORIGINAL ARTWORK BY MARC.ART, INC.
 
ASK AN ATTORNEY

 

Q What constitutes a restriction on a check? What do we do if the amount stated is wrong? What can be done if we accidentally deposit a restricted check? 
 
A: The general rule in most states including California is that if a creditor deposits a check marked "payment in full," that creditor agrees to accept the amount of the check as full and final payment.  However what if customer's check containing a restrictive endorsement goes to a lock box and thereafter is deposited into creditor's banking institution?  For example, a customer sends a check for $50,000.00 to the creditor marked "payment in full" or "cashing of this check constitutes payment in full."  The customer actually owes $100,000.00.  The creditor deposits the check form the lock box.  Has the customer cheated the creditor out of $50,000.00?  The answer is it depends.  The first suggestion is to immediately send the customer creditor's check in the sum of $50,000.00 with a cover letter stating the $50,000.00 check was accidentally deposited and as soon as creditor became aware of the mistake, they returned the $50,000.00 to the customer.  Unfortunately the customer can return creditor's $50,000.00 check with a cover letter stating "we are returning your check since you accepted $50,000.00 as payment in full."  Thus, a settlement can be forced upon the creditor by accidentally depositing a check with a restrictive endorsement.

 

The second suggestion is to just swallow the loss and accept the $50,000.00 as payment in full.  Creditor should then immediately place new company procedures for depositing checks from lock boxes.  Each and every check should be thoroughly scrutinized by examining both on the front and especially the back of the check.  A word to the wise.  The payment in full language should be on both the front and the back of the check.  California courts have repeatedly rendered defense verdicts when a debtor writes on the front and back of the check "cashing of this check constitutes full and final payment."

 

Thus, when a creditor receives any checks from customers, they should carefully examine the front and the back of the check to insure there is no restrictive language on same.  If creditor obtains these checks, they should not be deposited, and the client's credit manager should determine what to do with the checks marked "payment in full."

 

In our professional opinion, the customer's checks with the restrictive language should be returned to the customer immediately.  The account should be immediately referred to a commercial collection agency for collection of not only the full principal balance due but also interest, court costs, and legal fees if the particular jurisdiction awards legal fees via contract or statute.

 
Louis Jacobs
The Law Offices of Louis Jacobs
Los Angeles CA

  

A: Black's Law Dictionary defines Restrictive Endorsement as "An endorsement so worded as to restrict further negotiability of the instrument." As a collection attorney, however, I apply a more expansive approach to the concept. I consider all instructions associated with a payment to constitute a restrictive endorsement, even if the instruction is in a cover letter and/or the payment is cash. I always comply with the instructions as worded. If the client is not willing to do so, I suggest rejecting the payment. I would never process a payment contrary to expressed terms. So, if a payment is received with instructions that it be applied to a particular invoice, that is what I would advise my client to do. I would not advise my client to simply apply such a payment to the oldest invoice. If a lesser amount is submitted as payment in full, I would advise my client not to accept that payment unless it is willing to risk the account being considered as paid in full. Not honoring restrictions places unnecessary defenses in the hands of the debtor that can delay collection of the account. It is best that your case be kept clean of these issues so the remaining balance is the focus. I can offer three practice tips on this subject: First, be clear on application in your negotiation efforts to prevent the payment being submitted contrary to your desires. State how it will be applied in advance. Second, if you receive a payment with terms you cannot accept, advise the debtor that you intend to apply it a different manner and obtain written confirmation of the debtor's approval. This is extremely effective. Many debtors issue restrictions they did not really intend and back away when a reasonable explanation is provided. Finally, if a payment is accidentally processed contrary to debtor instruction, I advise the client to seek the confirmation above. If that cannot be obtained, I suggest returning the funds via a separate payment to the debtor. The debtor now has the creditor's dilemma of accepting the payment or not.   


 

Bradley J Chauvin, Esq.

Couch, Conville & Blitt LLC
New Orleans LA

 

A: Checks tendered with restriction generally relate to attempts by debtor to reduce the amount to be paid and extinguish an outstanding debt.  That is to say, debtor's generally will draft a check with a notation either on the back or front or in an accompanying letter that the check is tendered as "full and final payment" or other similar language.  If the recipient of the check does not agree with the amount of same, they can of course reject a check in its entirety, i.e return it to the drafter, or, if the check is negotiated in New York State, restrictively endorse same.  That is to say, on the back of the check above the endorsement, the language "Under protest and without prejudice and with full reservation of rights," or similar but inclusive language will serve to protect the creditor recipient of the check and allow the creditor to pursue the debtor for the additional sum that may remain due.  It should be noted, however, that that's the New York view as a result of case law and New York's enactment of the appropriate provision of the Uniform Commercial Code.  A caveat should be noted here and that is that New York is in the minority with regard to that provision's enactment in the Uniform Commercial Code.  It is but another example of where the Uniform Commercial Code is often not at all uniform.

 

Lester Taroff, Esq.

Row, Taroff, Taitz & Portman LLP

Bohemia NY

 

 

A: When the check is submitted with words on the front or back of the check indicating that it is submitted as full and final settlement of all claims between the parties or the check is submitted with a separate letter or writing indicating that it is submitted in full and final settlement of all claims between the parties and there is a legitimate dispute between the parties, then cashing of the check constitutes accord and satisfaction and is accepted in full settlement of those claims. However, under the Universal Commercial Code, if the creditor advises the customer that any communication of any disputed debts must be sent to a designated person, office or place and it is not sent to that place, then the creditor has 90 days to return the money to the debtor. Once the money is returned the creditor can proceed ahead for the full amount of their claim. It is necessary that the amount of the claim be unliquidated or the subject of a bona fide dispute. If the debtor simply submits a check marked payment in full and no dispute exists between the parties, then acceptance of that check is not full and final settlement of the matter. 

 

The safest avenue if a check is submitted to a Post Office Box or mail drop of any type and therefore is accidentally deposited is to immediately upon discovery of that fact, to return the amount of the restrictively endorsed check. Of course creditors should contact the debtor first to determine if the matter can be worked out and if a further agreement is reached where the debtor will submit additional funds to supplement the restrictively endorsed check, all of that should be confirmed in writing and should be done well before the 90 days so that the creditor is not bound by the restrictively endorsed check.  

 

William A. Rinehart

Rinehart, Scaffidi & Mathews

Milwaukee WI

In This Issue
CREDIT TIPS
DEWEY CHI'TING
ASK AN ATTORNEY
KREDIT KARMA
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PRINTING INDUSTRY CREDIT BUREAU CONTACT INFO: 



ANDREA SCHLACK
PRESIDENT

 

 

DENNIS ADAMS
VICE-PRESIDENT
COLLECTIONS MANAGER

 

 

RICK CRUZ
CHIEF RESEARCH 
OFFICER


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GENERAL MANAGER

 

 

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debbiep@picb-us.com

 

 

 

 

 

KREDITKARMA

DON'T GET BITTEN TWICE

 ******************

UNCOLLECTED

JUDGMENTS JANUARY 2013

FOR A COMPLETE LIST

GO TO 

www.picb-us.com

  

 

EMORY LITHO OF NASSAU LLC 

NY

 

FIRST FRUITS BEVERAGE COMPANY  LLC 

VA

 

CHRISTOPHER NICHOLAS CAMPOS D/B/A CAMPOS SCHOOL PORTRAITS

 

 

JEFFERY SAMUEL PERRY D/B/A/ CHICAGO SALON & DAY SPA

IL

  

GREGORYS FURNITURE & MATTRESS LLC

 NJ

 

ALEC W BOWERS D/B/A DIAT CONCEPTS, LTD 
IL

 

CMY&K ADVERTISING

 NY

 

CMY&K PUBLISHING

 NY

 

DALE JASLOVE IND D/B/A HEALTHCARE CONSTRUCTION

 MI

  

FRANK FINOCCHIARO INDIVIDUALLY & T/A LBT SYSTEMS & LBT SYSTEMS INC.

 NJ

 

HI INDIA, INC.,

 IL

 

HIGHER STANDARD ENTERPRISES INC D/B/A I TOUCH PUBLIISHERS.COM
NC

 

HIP HOP WEEKLY
ENTERTAINMENT, INC
FL

 

HOME VIDEO STUDIO INC IN

 

HOMETOWN HEATING & COOLING INC AND RICHARD E FOX INDIVIDUALLY

 NY

 

INDIAN HILL SYSTEM INC AN IL CORP AND ROBERT KELLY D/B/A
IL

 

JILL MORGENTHALER FOR CONGRESS
IL

 

JIM WEEMS D/B/A
J PRINT SERVICES
ID

JOSEPH D RINDER INDIVIDUALLY AND D/B/A BELTONE HEARING AID CENTER

 NJ

 

KARRY MATHESON INDIVIDUALLY AND D/B/A MATHESON CUSTOM PRINT

UT

 

KENMAR STATIONARY

 NY

 

KRISTYS MOORE A/K/A KRISTYS WAGGONER D/B/A ORION PUBLISHING
CA

 

LESTER BAFIA INDIVIDUALLY AND D MEGA FORCE PRODUCTIONS, INC

 IL

 

LISA DOTE INDIVIDUALLY AND D/B/A G GRAPHICS AND D/B/A PRINT THIS

 IL

 

NORTHWEST 

BINDERY INC
MN

 

NEW YORK FURNITURE GALLERY, INC.

NY

 

PET ENTHUSIAST PUBLICATIONS INC
NE

 

PHILIP D CHRIST D/B/A GREAT IDEAS
NY

 

PHILIP BASILE D/B/A P&M GRAPHICS
NJ

 

PHILIP BASILE D/B/A MINK INC
NJ

 

PINATA GRAPHICS

 IL

 

 PLAN A DAY ENTERPRISES LTD

D/B/A

THE DAILY PLANNER

NY

 

POL-MED CO AN ILLINOIS CORPORATION

IL

 

POWER SPORTS FACTORY

NJ

 

PREMIER PRINTING

IL

 

PRINT PARTNERS LTD

IL

 

REACH MARKETING SOLUTIONS LLC

GA

 

RICK VETKOS DBA

BELTONE OR 

OR

 

RODD MURPHY DBA

RODD MURPHY & ASSOCIATES

NY

 

RON CARTER INDIVIDUALLY AND DBA SOUTH STREET JOURNAL

IL

 

RUMORS ON GRAND, INC. A DISSOLVED CORP. & KATHLEEN M VOGT AKA KATHLEEN TEWS

IL 

 

 

 

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