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Help Request: Supplier In India Refuses To Pay Commissions

Posted at: Questions and Discussions | Posted on: Wed 14 Feb, 2007 7:31 am |
 
We received the following question from one of our board members:

I don't know if you have any good suggestions on this problem which did not arise with the use of your site, but I am looking for answers. We have a supplier in India that refuses to pay commissions, reimburse money received for samples not sent, etc. It is not a lot of money but all our attempts to contact someone, anyone in the India Export Trade Council and at the trade office of their Embassy here in USA had not gotten one single response. We have contacted two attorneys in Kolkata with no response. This goes back to August of 2006. Do you have any suggestions?



Thanks.

A.S.


Answer:

Hello A.S.,

Sorry to hear about the problems you are facing with this supplier. We know how frustrating and powerless it feels when this happens especially when dealing with an overseas company.

It looks like you tried many avenues. Have you tried to use a credit/account collection service?

Take for example, Total Credit Management that is based in India and offers an Overdue Account Collection Services, Negotiating a debt settlement, resolving a contractual dispute, etc. Their website is http://www.tcmindia.com . We found them by searching online for phrase “India Collection Agency”. Try the search and you will find many more collection agencies that offer their services in India.

Here is some information about working with attorneys and collection agencies in India:

* Lawyers in India are not allowed to work on a contingency basis. They typically send a formal legal notice to the debtor. If debtor responds they let the client deal with the debtor directly. Lawyers charge a fee for issuing a demand legal notice. If the debtor does not respond, a lawyer may recommend legal action. They charge a fee at each phase in the legal process (25% of costs at time of filling, 25% when summons is served, 25% when at stage of argument and the balance when verdict is obtained).

* A typical collection agency would work on a no collect no fee basis and may take a small placement fee. A collection agency would work on a no collect no fee basis if the matter is settled agreeably. If legal action is needed, a collection agency may request the cost of the legal fees from the client.

Hope this helps and that you get to a resolution.

To TradersCity members (especially the many we have from India); we all know that the majority of businesses honor their agreements and that there are millions of daily transactions done worldwide with no problems. And its also true that in every country there are instances when business agreements and contracts are broken and that the best approach is to be careful and to do due diligence in verifying new business partners via business credit reports, previous business references, using letters of credit, etc. The question is; Do you have any recommendations and suggestions for A.S. to resolve the issue? Please feel free to add your advice.



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