Customers Into Creditors
from the bad-news dept
It seems that some of the dot coms that are going out of business cashed checks from customers but never delivered the merchandise before going out of business. Now those customers only course of action is to join the long list of creditors who are trying to pick at the remains in bankruptcy court. Companies aren’t supposed to charge a credit card until an item is shipped, so most people who use credit cards are okay. However, when a check is used, the company will cash it immediately (to make sure it clears). I guess customers of even established dot coms might want to consider using escrow services instead of sending checks directly.