Monday, August 18, 2014
Practical and Proactive Tips for Dealing with Preference
By Jason M. Torf
NACM Credit and Financial Development Division
"Why are we being sued? We didn't do anything wrong.
All we did was get paid!"
This is a very common refrain heard
from credit departments when faced with a preference demand letter
or lawsuit. A preference claim is the ultimate "no fault" cause of
action. When you ship goods or provide a service, you expect to be
paid. When you do receive payment, you do not expect to have to
return it, particularly where no extraordinary collection efforts
were involved. Becoming the subject of a preference
action can be very frustrating. One good way to temper
that frustration, however, is to be prepared. Understanding the
most common defenses and the documents and data you will need to
assert those defenses will ensure that you are in the best possible
position to deal with a preference demand letter or lawsuit.
To read the full version of the
article, please click HERE.
The mission of the NACM
Credit and Financial Development Division is to develop
tomorrow's business leaders through core offerings.
National Association of Credit Management, is the
voice of "business credit" in America. NACM's members, nearly
16,000 strong, represent a wide variety of businesses from Fortune
500s to small companies. As the grantors of business credit, our
members make daily business credit decisions. The decisions they
make play an integral role in the U.S. economy. The business credit
executive - the NACM member - is an essential player in the free
NACM, through a variety of publications and its web site, reaches
more than 35,000 business credit professionals. NACM Membership has
grown from 600 at the end of 1896 to almost 16,000 today, making
the National Association of Credit Management one of the oldest and
largest business organizations in the United States.