subject: Dishonest Middleman Fraud [print this page] A dishonest middleman can use these tactics to disclaim any responsibility for the goods or payments. This scam pattern is often used by dishonest traders to dodge responsibility for the goods or any other claims. A buyer makes a purchase through a trading company. The contract is made between the buyer and the trader and all responsibilities of the parties are clearly stated in the contract. When the buyer receives the product he finds out that there is a shortage in the lot or the goods are of lower quality. The buyer sends a claim to the trader asking for compensation. The trader responds that he has to settle the matter with the producer first and only if the producer accepts the claim and compensates the loss to the trader will the buyer receivehis compensation. If the manufacturer refutes all responsibility for the loss, it will be hard for the buyer toobtain compensation from the trader, especially if the trader is a small company and financially weak. Very often the producer has no idea about the terms of the deal between the buyer and the middleman. Hemay have no idea what happened to the goods after they left his warehouse, about the quality which was promised by the trader, packaging, payment and delivery conditions etc. It happens that a dishonest trader could have repacked the goods or even replaced them with lower quality products. In this situation all parties involved will be blaming each other and often no compromise can be reached, especially, when the amount of the claim is not very high. The buyer will prefer to forget about the claim rather than start a legal action. This is a serious fraud. We can recommend the following ways to protect yourself: Remember, the trader bears all responsibility for the goods according to the contract. He should handle the claims and give compensation irrespective of the producers behaviour. Try to purchase directly from the producer. Usually manufacturing companiesare financially stronger than traders. If you are working with a trading company, check it carefully. If the report shows that you are in contact with a reliable and financially strong company your risks are much lower. If you have to deal with a trader make sure that this company is known in the market and well connected to the producer. Try to collect the information on the internet or from any other available sources.
Dishonest Middleman Fraud
By: Black-lists
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