Chase Bank-bank One / don't pay vendors and vendors go out of business
I used to work for a company in the accounting department that was awarded a huge account with Bank One now called Chase Bank. The company I worked for was a small mom and pop shop and had been in business for over 50 years. This account was to help the mom and pop shop with 70 employees pay off their building loan as this account was in the millions. Profit was over $900, 000 for this company and Thanks to Chase and Bank One they are out of business! Purchase order issued and the work began! New people were hired and three shifts were put on as Bank One/Chase wanted the work delivered everyday.
My bosses (two brothers) ran the operation smoothly until------Bank One decided not to pay their bills/invoices. Within on month they (the bank) ran up an unpaid receivable of $295, 000. No, there was no problems with the work-come to find out the AP people had put the invoices in the drawer 'and forgot about them.'
We then expanded the network system and the electrican came in and his comment to me and my bosses were 'oh my god you are doing work for Bank One/Chase? They are know not to pay vendors and I had a friend who lost his business because Bank One/Chase cash strapped him and called his notes even through they owed him $).
Well----that week we got a check in for $75, 000. I called to asked about the other $220, 000 as we were getting ready to bill them for another $95, 000 and I was told 'well, we just sent you $75, 000, aren't you happy)? When I explained that they were already in default of the contract by not paying on time the AP individual laughed and said 'we are the bank and we can do whatever we want to do with vendors-pay them or not pay them. No attorney will touch us.' Well, at the advise of our attorney who agreeded with the Banks statement as his form does alot of work for the bank, he said to not do anything to piss the bank off like refusing to do the work as they will crush us!
Well, finally cash ran out (the owners put in over $300, 000 of their own monies) and had to borrow on the account (yes, the loan papers say to finance the Bank One/Chase project) but in the end the bank did not pay what should have been pure profit and thus the bank calls their loans, sends in a receiver and the company is forced into a Chapter 11 bankruptcy. Yes, we have documents showing the Bank admits to owing but try getting any court(or attorney) to get justification. Do I hear class action? Has anyone else been ripped off by this bank as a vendor???
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