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I am a small businessman in rural Georgia with over 20 years in this
business. I perform professional investigative and support services
for Insurance companies who, in turn, pay for my services first by
retainer, then by billed actual expenses, (I am not an attorney.)
Several of the insurance companies have recently, (within the last 2
years,) begun to neglect payments and have even gone so far as to lie
about the status. They use every excuse in the book. One such
example was that because the bill was more than 2 years old, they
wouldn't pay, (even though I'd been trying to collect for more than a
year. In another case, they said the case had been closed and I would
have to pay $600.00 to re-open the case to even investigate my claim.
While my Accounts Receivable is adequate, ($200,000+,) I am constantly
having to borrow money.
I'm fed up!
Is there a reporting agency that I could report them to such as Dun
and Bradstreet? Does anyone know the procedure?
I have ample documentation and agreements signed by the respective
companies.
Thanks,
John
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You might try complaining to your state insurance commissioner. States
vary widely in the degree to which they regulate and control insurance
companies, though. If your commissioner is elected, you have a chance,
if he is appointed by the governor, you are screwed because he is then
a stooge bought and paid for by the insurance lobby.
It won't get your money for you, but you can get some satisfaction by
issuing a 1099 to the IRS for the money they defrauded you out of.
That way they will at least have to pay the taxes on it.-Jitney
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Many thanks for your response. I've already contacted the Ins.
Comm.and filed a complaint . . . still waiting on that.
Now, about the other . . . .
Hmmmmm . . . a 1099 to the IRS? Show as a loss?
Can this be done by a sole-propritorship (which is me,) or must I be a
corporation?
On 16 Dec 2003 14:28:28 -0800, jtnospam@yahoo.com (jitney) wrote:
You might try complaining to your state insurance commissioner. States
vary widely in the degree to which they regulate and control insurance
companies, though. If your commissioner is elected, you have a chance,
if he is appointed by the governor, you are screwed because he is then
a stooge bought and paid for by the insurance lobby.
It won't get your money for you, but you can get some satisfaction by
issuing a 1099 to the IRS for the money they defrauded you out of.
That way they will at least have to pay the taxes on it.-Jitney
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I am a small businessman in rural Georgia with over 20 years in this
business. I perform professional investigative and support services
for Insurance companies who, in turn, pay for my services first by
retainer, then by billed actual expenses, (I am not an attorney.)
Several of the insurance companies have recently, (within the last 2
years,) begun to neglect payments and have even gone so far as to lie
about the status. They use every excuse in the book. One such
example was that because the bill was more than 2 years old, they
wouldn't pay, (even though I'd been trying to collect for more than a
year. In another case, they said the case had been closed and I would
have to pay $600.00 to re-open the case to even investigate my claim.
While my Accounts Receivable is adequate, ($200,000+,) I am constantly
having to borrow money.
I'm fed up!
Is there a reporting agency that I could report them to such as Dun
and Bradstreet? Does anyone know the procedure?
I have ample documentation and agreements signed by the respective
companies.
I don't know how to file the credit report, and I don't see how it will do
you any good anyway. The report won't result in any change in the insurance
company's practices. All you can do is sue for the overdue payments. If
the company wants to out-spend you and drive you away, they can. Sometimes
they do, sometimes they don't. They defend in small claims in the normal
way, sometimes. I expect you would lose a client if you sue, but maybe that
would cause you to focus your work on the good paying clients. And it's not
a sure thing that you would lose the client. It's possible that the
department hiring investigators doesn't agree with the practices of the
accounts payable department, stiffing their best suppliers. They might
continue to hire you after the lawsuit. You can always ask. Call your
buyer type person in the company and ask: "Would you quit hiring me if I sue
the company for payment?"
McGyver
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On Wed, 17 Dec 2003 09:58:21 -0800, "McGyver" <Greyprof@msn.com>
wrote:
I don't know how to file the credit report, and I don't see how it will do
you any good anyway. The report won't result in any change in the insurance
company's practices. All you can do is sue for the overdue payments. If
the company wants to out-spend you and drive you away, they can. Sometimes
they do, sometimes they don't. They defend in small claims in the normal
way, sometimes. I expect you would lose a client if you sue, but maybe that
would cause you to focus your work on the good paying clients. And it's not
a sure thing that you would lose the client. It's possible that the
department hiring investigators doesn't agree with the practices of the
accounts payable department, stiffing their best suppliers. They might
continue to hire you after the lawsuit. You can always ask. Call your
buyer type person in the company and ask: "Would you quit hiring me if I sue
the company for payment?"
McGyver
Thanks to all you posters. I've learned quite a lot. McGyver, you
are absolutely correct in your ideas. However, since filing a report
with the Ins. Commissioner AND filing with Dun & Bradstreet, I've
received two interesting and productive calls. One from each of two
delinquent Ins. company, Accts. Payable Departments. Each of them
have promised, "Da Check's In Da Mail." Now, if you believe that then
you'll probably believe the two OTHER greatest lies, which shall
remain nameless. But there's always HOPE.
Thanks again and Happy Holidays to all
Rusty
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Happy holidays to you too. I am now back from my roadtrip. The way the
1099 works is on the enrichment theory. All non-exempt income is
taxable regardless of its source. If someone mugs you for your wallet,
that is their income and is taxable. If you provide a service in which
your client was enriched and he stiffs you, the fair market value of
that service is income and the income tax is due and payable on it. I
work with the construction trades where there are numerous shady
customers and sub-contractors. Once I determine that a bill is
uncollectable, the 1099 gets filed with the IRS. It gets you no money
but loads of satisfaction. In your business, you probably see loads of
this kind of thing and you might advise your clients accordingly.
In some states, insurance companies have to justify why they should
be allowed to continue doing business in that state on a periodic
basis(usually yearly) before a licensing board. Find out when their
public meetings are and see if you can testify when your deadbeat
clients come up on the schedule. That should shake it loose.-Jitney
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Crossposted to misc.taxes. The entire message is quoted to
provide context.
jitney wrote:
Happy holidays to you too. I am now back from my roadtrip. The way the
1099 works is on the enrichment theory. All non-exempt income is
taxable regardless of its source. If someone mugs you for your wallet,
that is their income and is taxable. If you provide a service in which
your client was enriched and he stiffs you, the fair market value of
that service is income and the income tax is due and payable on it. I
work with the construction trades where there are numerous shady
customers and sub-contractors. Once I determine that a bill is
uncollectable, the 1099 gets filed with the IRS.
I don't think this is legal. However, I don't have time to
research it now, so I'll just copy it to misc.taxes.
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