U.S. Clothing Industry Chargeback and Contract Dispute Lawyers
As your attorneys, we can help you fight any invoice chargebacks and help you collect money you are due.
What Is a Chargeback and How Can a Clothing Supplier Prevent One?
In the garment industry, a chargeback occurs when a garment supplier receives a debit notice in lieu of payment. These debit notices may be contained as part of a payment statement reflecting invoices that have not been paid or have been underpaid. The returned invoice may even state that the supplier, who has provided the goods, owes the retailer money, even after the goods have been shipped and received.
During the recession in the 1990s, department stores suffered financially and learned ways to save money by inserting more favorable payment terms and new compliance requirements into their contracts. Small-time suppliers of bulk clothing were seriously affected. For example, they could send products to a company and not be paid for those products. In fact, a department store could accuse the supplier of sending the products late or could claim that the products were inferior and refuse to pay for them.
These unjustified chargebacks have led to the bankruptcy of a number of small supplier companies. Incredible as it may seem to people outside the garment industry, suppliers often find themselves owing money even though buyers have received their products.
Our firm can help you protect your company from chargeback disputes. If you have received an unjustified chargeback, we can help you take action and will fight to preserve the integrity of your company. This includes review of contracts in trade partner agreements or compensation for factors.
Acting Quickly to Protect Your Rights
If you have received a chargeback on an invoice, it is important to seek legal counsel. Often, the fine print within your contract includes a provision that if your company does not protest a chargeback within 90 days, the charges are considered valid. We will work quickly to take action and collect the money you are due.
The Law Offices of Filteau & Sullivan, LTD., LLP, invites you to contact our firm today if you are a clothing supplier or factor in the clothing industry. If you have been lucky enough to avoid serious disputes thus far, you should talk to an attorney to prevent future financial losses. Unfortunately, many suppliers are not aware of their chargeback rights because clothing buyers often convince other suppliers to sign confidentiality agreements. We can educate you on your rights.
The Law Offices of Filteau & Sullivan, LTD., LLP
1634 Columbia Street
Houston, TX 77008
713.236.1400