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PRINTING INDUSTRY CREDIT BUREAU 
(847) 265-0400
ISSUE # 8
JUNE 2012
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Did you know that cash flow can be improved when a customer' payment history is considered prior to extending or granting credit terms.  Have you ever been shocked by a 'good customer's bad behavior' or wished for a do-over after your money walked? Is it possible that these situations were predictable?

 

Winston Churchill once said "We either learn from history or we are destined to relive it", while his pronouncement was in relation to a world view during troubled times, this same ethic is of critical importance to the good financial health of businesses today. When a customer's propensity for slow-payment and/or no payment is ignored can financial losses be unexpected? 

 

I am reminded of a Star Trek Next Generation episode where "Q", an omnipotent and chaotic being from another dimension  called the Continuum, took Captain Jean Luc Picard back in time to ponder the primordial ooze from which life arose, "Q"  pronounced the Continuum's sentence upon Jean Luc  for his crimes, stating that should he fail to identify and rectify 'his' mistakes Mankind would simply cease and slip back into the slime.

 

While history was Churchill's teacher and pondering the Primordial ooze provided Picard's education can the article below, which was published in the early 1900's be our mentor: 

 

typhoid 1 typhoid 2  

Printing Industry Credit Bureau helps printers rise from the primordial ooze into a financially stronger future

 

  • RISKEE BUSINESS: PICB's free online extensive database that provides our clients unlimited access to determine if their customer may have had prior problems
  • RESOURCES: PICB's web-portal to government sponsored websites that permits users access to free  public information that is essential when determining potential credit risk factors
  • DUE DILIGENCE REPORTING: When time is short and  you haven't had the time to do research, PICB can do that for you. Our reports are prepared the old fashioned way of  research while using 21st century tools to maximize accuracy
  • COLLECTION SERVICE: Who better to handle a printers non-paying accounts than an agency designed and dedicated to the graphic art industry

www.picb-us.com

 

  

 

DEWEY CHI'TING
LARSON  NY
  
 Dewey June Cartoon
ORIGINAL ARTWORK BY MARC.ART, INC.
mob5948@aol.com 
 
ASK AN ATTORNEY

 

Q:  What is the best way to deal with NSF and/or closed account checks? Also how should we handle a check that has a stop payment placed upon it after the goods were delivered?  

 

AMichigan Law:  the penalty is the original plus twice the amount plus 

$250....so we end up with a total of 3 times the check plus $250...but only

if the debtor fails to make good on the check before a judgment is entered,

if he does, he only pays the $250.

 

There is a form letter that must go out.

 

Steven A. Harms

Muller, Muller, Richmond, Harms, & Myers

Birmingham MI

 

AIn Texas you have a theft of goods and services cause of action.  You can also send a letter to the district attorney and CC the debtor.  I would also sue the officers and directors based on the undercapitalization of the business.  In other words, the officers and directors are and should be aware that the business does not have the money to pay for goods and services at the time the goods are purchased. If is not good enough to say that we could not pay you because our client could not pay us.  The client is not giving credit to the debtor's customer. They are giving to the debtor.  The officers and directors have the duty to put the creditor on notice if they do not have the money to pay for goods and services, AT THE TIME THEY ARE ORDERED.  

  

Andrew Totz

Totz, Ellison & Totz, P.C.

Houston TX

 

AIn Utah, pursuant to Title 7, Chapter 15 an issuer of a check is liable to

the holder of the check if:

   1.  the check is not honored and marked "refer to maker";

   2.  the account upon which the check is drawn does not exist; has been closed; or does not have sufficient funds or credit for payment of the check; or

   3.  the check is issued in partial or complete fulfillment of a valid and legally binding obligation and the issuer stops payment with the intent to fraudulently defeat a possessor lien; or otherwise defraud the holder of the check.

 

If the amount of the check is not paid, the issuer is liable for the amount of the check plus a service charge of $20.00 per check.

 

If the amount of the check and the $20.00 service charge is not paid within 15 calendar days of the day a specified written statutory notice is mailed to the issuer, within 30 days the issuer is liable for the amount of the check, the $20.00 service charge, and a collection fee not to exceed $20.00 per check.

 

If the amount of the check and the $20.00 service charge and the $20.00 collection fee is not paid within 30 days of the statutory written notice, THEN AND ONLY THEN, a civil action may be filed for

   The check amount

   The $20.00 service fee

   Collection fee not to exceed $20.00

   Interest

   Court costs

   Reasonable attorney's fees

   Actual costs of collection as provided by law

damages in an amount equal to the greater of $100.00 or triple the check amount per check, except that damages may not exceed the check amount by more than $500.00.

 

Gary L. Chrystler

Attorney & Counselor At Law

Provo UT

  

A: Can it be incorporated? Sure. But is it enforceable? In California, the answer is "no." A confession of judgment is subject to strict statutory requirements, one of which is that the debtor's attorney must sign off on the confession, in order to be valid. Moreover, the debtor would have to confess to a sum specific in advance of the credit actually being extended, which would violate the requirement that a contract be supported by consideration.


John D. Guerrini
The Guerrini Law Firm 
Pasadena, CA
 
A: In New York such a provision is deemed void as a matter of public policy .

 

Elliot M. Portman
R.T.T. & Portman LLP
Bohemia, NY

 

A: Unfortunately, the law is very clear in Wisconsin. Confessions of judgment have been banned since the early 1980's. Including them in a credit application would potentially endanger the entire credit application. If one is incorporated in a credit application, at the very least, a severability clause should also be included in the credit application so that if the confession of judgment is determined to be unenforceable, as it would be in Wisconsin, the rest of the credit application would still be enforceable.

 

In addition, if we are dealing with a Wisconsin creditor and they have a provision in their contract indicating that Wisconsin law is the controlling law for any disputes, then any confession of judgment that may be contained in the credit application would be unenforceable, even if the customer debtor is located in another state.

 

In Wisconsin, the only time we can obtain an agreement from a debtor to allow entry of judgment if they do not pay under the terms negotiated between the parties, is after a lawsuit has been commenced, when a stipulation can be entered and approved by the court, allowing the creditor/plaintiff to enter judgment if the debtor defaults on an agreed upon payment arrangement. 

 

William A. Rinehart

Rinehart, Scaffidi & Mathews

Milwaukee WI

  

A: Anytime a check is tendered as payment for supplies or services provided, it is necessary to obtain as much information about the individual who actually signs the check, even if the check is drawn on a corporate/business account.  If the individual signor's name does not appear on the face of the check, demand that they print their name on the face of the check.  Further, the more information you can obtain from the individual, the better. i.e. address, phone number, social security #, etc..  As the individual can later be liable for the NSF check, information on the individual will aid you later down the road.

                                        

To further protect yourself, demand that the check contain as much information about what is being paid for with this specific instrument.  For example, in the memo line, list the specific invoice that is being paid with this check.  If multiple invoices are being paid with one check, list all invoices being satisfied with this check.  The individual/business who bounces a check is also likely to later allege that previously or subsequently tendered checks (which did clear the bank) were intended to satisfy the invoices at issue on the NSF check. 

 

Governing Law for NSF Checks

 

Once a creditor is confronted with an NSF check from a debtor, regardless of the underlying debt, the individual whom signed the check is now potentially liable for the amount of the check, statutory damages and attorney's fees.  The case law is clear on this issue with the conclusion being: "A person violates the bad check statute if, with intent to defraud and with intent to obtain control over property or to pay for property of another, he issues or delivers a non-sufficient funds check. Ill. Rev. Stat. ch. 38, para. 17-1 (1987). Nowhere does the statute require that the "person" acquire the property "for his own use."

 

The Illinois Statute governing NSF checks is: ยง 720 ILCS 5/17-1.  It is commonly known as the Deceptive Practices Act.  Section B of this statute specifically refers to NSF check.  The pertinent part of Section B reads: "A person commits a deceptive practice when: 

 

(1) With intent to obtain control over property or to pay for property, labor or services of another, he or she issues or delivers a check or other order upon a real or fictitious depository for the payment of money, knowing that it will not be paid by the depository. The trier of fact may infer that the defendant knows that the check or other order will not be paid by the depository and that the defendant has acted with intent to defraud when the defendant fails to have sufficient funds or credit with the depository when the check or other order is issued or delivered, or when such check or other order is presented for payment and dishonored on each of 2 occasions at least 7 days apart;  

 

(2) He or she issues or delivers a check or other order upon a real or fictitious depository in an amount exceeding $ 150 in payment of an amount owed on any credit transaction for property, labor or services, or in payment of the entire amount owed on any credit transaction for property, labor or services, knowing that it will not be paid by the depository, and thereafter fails to provide funds or credit with the depository in the face amount of the check or order within 7 days of receiving actual notice from the depository or payee of the dishonor of the check or order.

 

Importantly, the case law presumes that a debtor has, or should have, the knowledge of what funds are in its account.  So, the burden for "intent" shifts to the debtor who must present evidence showing that the NSF check was not tendered with the intent to defraud. 

 

Debtor's Liability for NSF Check (Creditor's Recovery)

 

Taken directly from the Deceptive Practices statute, "A person who issues a check or order to a payee in violation of paragraph 

 

(B)(1) and who fails to pay the amount of the check or order to the payee within 30 days following either delivery and acceptance by the addressee of a written demand both by certified mail and by first class mail to the person's last known address or attempted delivery of a written demand sent both by certified mail and by first class mail to the person's last known address and the demand by certified mail is returned to the sender with a notation that delivery was refused or unclaimed shall be liable to the payee or a person subrogated to the rights of the payee for, in addition to the amount owing upon such check or order, damages of treble the amount so owing, but in no case less than $ 100 nor more than $1,500, plus attorney's fees and court costs. An action under this subsection 

 

(E) may be brought in small claims court or in any other appropriate court. As part of the written demand required by this subsection 

 

(E) the plaintiff shall provide written notice to the defendant of the fact that prior to the hearing of any action under this subsection 

 

(E) the defendant may tender to the plaintiff and the plaintiff shall accept, as satisfaction of the claim, an amount of money equal to the sum of the amount of the check and the incurred court costs, including the cost of service of process, and attorney's fees.

 

Final Recommendations

 

A common hurdle creditors run in to when dealing with collection arises when a corporate entity is liable for the underlying debt the creditor is attempting to collect.  Corporations dissolve, voluntarily and involuntarily often, many times to avoid creditors.  Further, the principals of these corporations funnel the monies/assets out of the corporation long before the creditor can enforce a judgment.  The easiest solution to this problem would be simply getting a "personal guaranty" on any agreement made.  However, avoiding a personal guaranty is exactly why the principal set up the corporation in the first place. 

 

So, once a check is tendered by a principal, or other individual, the signor is now potentially putting themselves on the line for the debt.  This is why it is important to get all information on the signor of the check.  If that check is returned NSF, the creditor can now pursue not only the corporation, but the individual as well.  While no creditor wants to see a check returned NSF, it sometimes can lead to greater collection in the end, so long as all measures are taken to gain knowledge on that individual.

 
MICHAEL BAIM 
MANAGING PARTNER THE CKB FIRM
CHICAGO IL 

 

  

 

 

In This Issue
CREDIT TIPS
DEWEY CHI'TING
ASK AN ATTORNEY
KREDIT KARMA
Quick Links  

PRINTING INDUSTRY CREDIT BUREAU CONTACT INFO: 


ANDREA SCHLACK
PRESIDENT
andreas@picb-us.com

 

DENNIS ADAMS
VICE-PRESIDENT
COLLECTIONS MANAGER
dennisa@picb-us.com

 

RICK CRUZ
CHIEF RESEARCH 
OFFICER
rickc@picb-us.com

JANET DIENES
GENERAL MANAGER
janetd@picb-us.com

 

ROBBIE BURCH

DIRECTOR OF SALES AND SERVICE

robbieb@picb-us.com

 

KREDITKARMA

DON'T GET BITTEN TWICE

 ******************

UNCOLLECTED

JUDGMENTS JUNE 2012

FOR A COMPLETE LIST

GO TO 

www.picb-us.com

  

 

ANDREW EPERI, INDIVIDUALLY AND D/B/A AFRIQUE IL


ALEX FINO D/B/ASF TRANSPORT SERVICES PA


ASSOCIATED AIR PRODUCTS

 FL


BERG PRINTING ENTERPRISES, LLC D/B/A MASTERPRINT

WI  

BLUE INK

 IL


CCMP D/B/A BERYLMARTIN
IN


CMY&K ADVERTISING

 NY


CMY&K PUBLISHING

 NY


DALE JASLOVE IND D/B/A HEALTHCARE CONSTRUCTION

 MI


DBR ENTERPRISES INC & ANNA FREGRON AS PERSONAL GUARANTOR
SD


DESI TALK INC A DISSOLVED IL CORP & HEMANT BRAHMBHATT DBA
IL


DIRECT MEDIA MARKETING INC
NE


EL SOL NEWSPAPER

 IL


EWA KUCHINO D/B/A A TO Z MEDIA GRAPH A DISSOLVED IL CORP
IL


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


LORI HUTCHINGS D/B/A KANGAROO CARDIO AND KENDRA MEEKER D/B/A KANGAROO CARDIO
KS


MBL COMMUNICATIONS INC
NY


MICHAEL E EVANS, GLORIA M EVANS
D/B/A ARMOUR OF LIGHT PUBLISHING

NC


MY MOTHERS INVENTION

 TX


NATALIE HAREWOOD, GUARANTOR FABULUSH D/B/A JOLIE MAGAZINE

 NY


NATIONAL FIBROMYLGIA ASSOCIATION
WI & CA


NOVA CINETECH

 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 IL CORPORATION
IL


POWER SPORTS FACTORY
NJ


PREMIER PRINTING

 IL


PRINT PARTNERS LTD
IL


REACH MARKETING SOLUTIONS, LLC

 GA


RICK VETKOS DBA BELTONE OREGON

OR


RODD MURPHY D/B/A RODD MURPHY & ASSOCIATES
NY


RON CARTER INDIVIDUALLY AND D/B/A SOUTH STREET JOURNAL

IL


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

 IL


SANDESH
PUBLICATIONS, INC. IL
SANDESH PUBLICATIONS INC AN IL CORP
IL


SANDESH PUBLICATIONS, INC. & HEMANT BRAHMBHATT AS GUARANTOR

 IL


SEARCH 1 AMERICA F/K/A LUX PREMIER, LUX PUBLICATIONS LLC D/B/A LUX PREMIER
IN


SHE SKIN LLC

 IL


SLICK ROCK PUBLISHING NM


SOUTH STREET JOURNAL INC AN IL CORP AND RON CARTER D/B/A
IL

STEVE BONICA D/B/A ROMANIAN
TRIBUNE
IL

SY LENG A/K/A LENG SY D/B/A ECO SYSTEMS AQUARIUM
CA


THEWATERPEOPLE.NET

 CT


THREE ANGELS PRINTING SERVICES, INC

 IL


TUMBLEWEED POTTERY

 NC


VILLAGE FARM STAND, INC, D/B/A VILLAGE MARKET OF CALUMENT CITY

 IL


VINCENT ALEXANDRIA, PARTNER OF WE MUST XL MO


VOYAGER ENTERPRISE, INC. IL


ZOOM GRAPHICS, INC.
IL  

 

 

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