The complaints with First Call Communications bring to mind situations I
have seen repeated many times in my contacts with various failing
business enterprises over the years. The tactic of taking money up front
and then delaying the payment to the manufacturer (or builder or
subcontractor...whatever) is characteristic of businesses that are
technically bankrupt but are continuing on using the "float" all the
while getting themselves in deeper and deeper financial debt. They use
the advance money from new sales to pay off the subs or manufacturers
for previous orders, the advances for which were spent on orders before
that. Building contractors that aren't making it financially pay off the
subs on the previous house with the down payment from the next house or
even two houses down the line.
Very slow paying in business is one of the classic signs of a
financially failing company. The slower they pay, the worse trouble they
are probably in. Failure to give refunds may mean First Call doesn't
have it to give. Can't imagine First Call would accept the bad rap they
are getting if they were financially sound and could meet their
financial obligations. In time, the final day of financial reckoning
comes and someone sues which forces an involuntary bankruptcy. Then all
"advances" or "refunds due" are probably lost forever. Rarely does an
unsecured creditor get anything.
The only real defense the consumer has is to recognize the signs of
impending financial business failure for what they may be. Caveat
Emptor! Buyer beware! Anyone who gives advance money to any firm
displaying these characteristics should not be surprised to hear one day
that the company has gone chapter 13 and that you have lost your money.
The buyer certainly had plenty of warning. They have only themselves to
blame.
Best course for new buyers could be to try to strike a purchase direct
with the manufacturer if he appears to be solid. A responsible
manufacturer would be likely to dump a financially insolvent distributor
that is creating much customer ill will. That in itself could
precipitate a financial collapse.
No point in carping about how bad you have been treated. Wake up and
smell the coffee.
Jack
KD7OE
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