Recently one of our larger clients, a major underwriter with several direct operations, has began funneling all of their work through a vendor management company.  In the past there was never a problem with their payment.  We billed each office separately and we always received payment in full by the due date for each invoice. 

Now, however, the VMC office that is handling their work can't seem to send payment on time or in full.  We just received a check on Septembers invoice - the invoice was for $143, and they paid only $25.  They have an outstanding balance from December of $1,926, which is now late.  To make matter worse, the direct operations appear to have stopped paying their outstanding invoices.  One office has outstanding invoices from July.  Some of their work is commercial and we routinely have to wait longer to get paid on some of these orders.  But, this is getting ridiculous.  

I'm sure this will be a nightmare to try to straighten out because there are so many offices involved. 

I have been convinced for a long time that the reason these companies set up vendor management companies is at least in part because they save them money by not paying their abstractors in full.  They routinely make partial payments until you can't tell which office owes what and which invoices haven't been paid.  

IT IS VERY SIMPLE - YOU GET AN INVOICE... YOU SEND A CHECK IN THE AMOUNT OF THE INVOICE BY THE DUE DATE PRINTED ON IT.  IT IS NOT ROCKET SCIENCE!

We are cutting off service to all of these companies until the all of their accounts are brought current.   We should have done it months ago, but they have always been good about getting their payments right in the past.  

Best,
Robert A. Franco
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