IS NAME AND SHAME THE ANSWER
Saturday, December 7, 2013 @ 12:45 PM
NAME AND SHAME
Mike Walsh
Is name and shame the name of the game? A lax system of debt recovery in Costa Spain has lead to widespread abuse by businesses that order services and then neglect to pay. Of eight business clients on the Sol only two paid for work completed. The Costa Blanca is a little better behaved with just two businesses putting two fingers up to the overdue invoice.
Does such corruption merit a Name and Shame response, perhaps through social media? Such a suggestion is considered unethical or even, in terms of risk, unwise. How do I reply to that?
It is unethical to place a small order, often with the promise of later substantial orders, and to then ignore the invoice for the service provided. Such parasites know that using legal channels to recover debts is rarely worth it in terms of hassle and cost. Small businesses tend to put it down to experience and write it off.
On the topic of ethics it is unethical for small businesses to shrug off such abuses. This allows the business leeches to prey on other businesses without fear of exposure.
Sure! In the event of scoundrel companies being named and shamed there is theoretical risk in being sued. Similarly there is a theoretical risk to them in my pursuing a €50 debt through the system. It is an empty threat so Name and Shame is a useful way of turning the tables on companies that take suppliers for a ride.
Why do I consider a threat to sue an empty gesture? Because such a tactic would attract further negative publicity. It would be a costly distraction. Besides, their weak attempt to salvage their reputation through a lawyer would be doomed to failure if they had not paid a legitimate bill.
Perhaps the best solution is to refuse orders unless pre-payment is made. This can be in part payment as a goodwill gesture. If clients are genuine and wish for a good partnership they will understand. If they take their business elsewhere they are not the kind of business that your business should be associated with. Count your blessings.