FDIC broke the bank

[ihabkal]

so I got this today from a client, of course I am more depressed than ever now, I got house payments in Lebanon too.

"We submitted an invoice for the Hemet project several weeks ago, however, the FDIC took over the bank and they haven't been able to give us a specific date on when we will be paid. Unfortunately, until we receive a payment from the Hemet project, I am unable to process your payment.

 

As soon as we receive the payment, I will transfer the funds to your account. I apologize for the delay.

 

I will keep you posted."

 

 

so do you think I will get paid? will the FDIC set the money free?

Anyone had the same thing happen to him.

Thanks

[AJLynn]

Do you have a well written contract? You might just have to go after the client; who the heck knows what the government will do.

[EddieLeon]

This sounds like an excuse to me. I haven't heard of anyone not being able to access their money because of FDIC. When they take over a bank they don't necessarily freeze accounts. In fact, FDIC guarantees that a certain amount of your money is insured.

 

Anyway, your contract is with your client and not FDIC, so I recommend you demand payment. Also, don't threaten with a lawsuit because it probably won't work.

 

Good Luck! Collections is a huge nightmare now for everyone. I feel your pain

[Ky Lane]

You could adopt what I ended up doing...

 

Raise your rate by 25%.

 

Offer a 25% discount if your invoice is paid within X weeks.

 

Good incentive to pay ontime/early, or you win a bit extra afterwards - and the client gets the impression theyre being looked after with a discount.

 

Win/Win!

[WAcky]

Everyone knows a solicitor. Get them to email the client telling them to cease using the image(s) until payment has been made?

 

Might be a loss cause without a contract tho...

[Ky Lane]

Everyone knows a solicitor. Get them to email the client telling them to cease using the image(s) until payment has been made?

 

Might be a loss cause without a contract tho...

 

Good call. Not sure what copyright laws you have over there; but over here theyre implied. So, Id just remind them that you own the image, and are refusing its use until full payment received.

 

Downside/Upside being, dont expect to hear from that client again.

[Dreamer]

Hi Ihab.....seems u r facing some tough problems with ur clients over there....wish u luck...and hope u contact me asap

[TheAllusionisst]

Not handing over images without repeating watermarks until you get paid is also a good insurance plan I hope you get paid soon, good luck.

[WAcky]

Good call. Not sure what copyright laws you have over there; but over here theyre implied. So, Id just remind them that you own the image, and are refusing its use until full payment received.

 

Downside/Upside being, dont expect to hear from that client again.

 

I think if you're firm but fair and they're happy with the work then they shouldn't run.

 

As the great Donald Trump says, its business, nothing personal...

 

I miss the apprentice...

[shaneis]

This sounds like an excuse to me.

 

True, but it's an excuse that we're hearing more and more often. Cashflow isn't as constant as it was, so people are holding back - not to avoid payment, but to avoid running dry and some businesses have been caught out of pocket more than others. Right now, no business can afford to max-out an overdrdaft.

 

Ihab, I've found some success with asking for a smaller interim payment, call it an expression of goodwill. Most can afford to forward a portion of what they owe. If they can do that, you can relax a bit. If they can't, then I'd call payment of the outstanding amount a "possible maybe".

 

How you deal with "ownership" of the imagery is important too. If you've had a good relationship with this client for some time, it'd be very unwise to hold-back the rights to the imagery. It will sour the relationship and probably impede them from doing business upstream, hence, lessen the chance of you being payed. Cut them some slack, but of course, let them know that you won't do any further work until the current invoice is settled. If it all works out well in the future, make sure to make new arrangements for a period so that confidence is rebuilt. Maybe move to progress payments and final payment upon delivery for 6 months - see how it's going and re-assess then.

 

Good luck,

 

S.

[WAcky]

let them know that you won't do any further work until the current invoice is settled.

 

+1

 

good call.

[innerdream]

Tough situation. The FDIC story sounds like a story. It all comes down to your relationship with the client now and in the future. No future? Kick their ass. Future? Try and work with them, partial payment was suggested. Explain that you have expenses and are an independent contractor with mouthes to feed. The best approach is honesty and not putting them on the defensive, change comes from within far easier than from external pressure and threats. In other words explain to them their obligation to be upfront.