In this industry, we have a clause in our contract for "Charge Backs". This is when a company that we contract with will charge back the contractor for any sales that cancel or disconnect after a set amount of days. Typically this is 90 days.
The contractor, in this case, Deluxe Marketing, Inc, will set up a hold back account for each rep and manager. The average for this industry ranges from $500 to $1,000 and is released 90 days after the last sale completes. Deluxe Marketing Inc holds your hold back for 180 days, twice as long as any other company in this industry. They also hold $3,000, three times higher than any other company in this industry.
Here is where it gets shady. If you are contracted in a market and with a company that doesn't have charge backs, there is no reason to hold this money. There is no risk of loss to the company.
While Deluxe Marketing was contracted with Cox Communications in Southern California, there were no charge backs and never the potential for charge backs. [continued below]....
..... Yet, Jeremy Larson and Brad Canepa still continue to hold on to the hold back money of the 30+ reps and managers that one day found themselves without work in this market due to Jeremy Larson and William Biggs losing the contract.
Jeremy and I had an agreement to release these hold backs the the reps that earned this money in 60 days after the contract was lost. This seemed fair enough, even though there was absolutely no reason to hold the money.
When I contacted Jeremy Larson and Brad Canepa to have the money released, they refused and I was referred to their attorney. Jeremy and Brad feel that holding on to this money as long as they can is the right thing to do.
Jeremy Larson continually brags about being an INC. 500 fastest growing company. That means he has plenty of money to pay the reps that have put him on that list. The ONLY reason to hold this money is the pure greed of Jeremy Larson and Brad Canepa.
In the contract that we all signed, here is what it states:
21.) Charge Backs - A reserve account of $3,000.00 will be established to cover potential charge backs for contractors.
So, if there is no potential for charge backs, what is the point of the reserve account?
While I truly believed in this company for two years, enough to relocate my family halfway across the country, greed has chocked all the life out of anything good this company had to offer.
All that we are asking is that the millionaires release what rightfully belongs to the hard working reps that earned them all of their money. Just do the right thing for the reps that need that money to support their families.