Ok I have to give some background, this is happening to a friend of mine who works for a small startup company. He's the manager for their shipping and packing needs they had a Fed-Ex account in which they got about $300 behind on. Fed-Ex also agreed to allow for monthly payments and then in a letter sharply told this small company that they had to remit payment of the balance of $300 immediately. Well the company was cash strapped and could not do this, they promptely switched to UPS and have since quit making payments to this fedex account, now Fed-Ex has hired a lawyer / collections company, who is threatening a suit if payment is not made in 30 days, will they really do this over such a small amount? (Keep in mind this lawyer is in California and my friends company is located in Georgia.)
2006-08-18 02:17:28 · 4 answers · asked by Dr. D 2 in Business & Finance ➔ Other - Business & Finance
Probably not.
2006-08-18 02:23:00 · answer #1 · answered by The Man 4 · 0⤊ 1⤋
They probably will. The law says that a company can threaten to sue ONLY if they actually intend to sue.
FedEx had a bunch of high-dollar lawyers who are unlikely to have missed this basic tenet of collections law.
2006-08-18 02:24:44 · answer #2 · answered by 4999_Basque 6 · 0⤊ 0⤋
Yes, they will and can.
If your friend had continued making "even small payments", there would be nothing they could have done.
This will end if the friend makes an agreement with the collection agency for a payment plan.
2006-08-18 02:29:01 · answer #3 · answered by ed 7 · 0⤊ 0⤋
yes, they will really sue.
a business cant pay a 300 buck bill?
what business? i would like the name to make damn sure i dont ever do business with them.
2006-08-18 02:23:33 · answer #4 · answered by digital genius 6 · 0⤊ 0⤋