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who can i file a complaint with for an account that is already in review for monies owed

We are the factoring company who advances funds to our client, the company fell short with unpaid wages and fell short with payments being made to workers. who can i file a complaint with to try and recover funds? as they are in litigation currently.

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Mar 18, 2020

Typically, a client who enters into a factoring agreement will assign their recovery rights to the factoring company. So, whatever rights the client would have to recover the debt should be on the table for the factoring company - such as lien rights, legal claims, etc. against the project or the client's customer. Now, if the client was actually paid in full but the factoring company was not, then the factoring company should have causes of action against their client based on the contract they signed. In that case, the next steps should be guided by the contract. If the contract calls for alternative dispute resolution, then going to mediation or arbitration may be required. If the contract identifies liquidated damages as the solution, then getting the ball rolling there with a demand letter would make sense. Or, proceeding with legal claims may make sense if that's what's called for/ if the contract is silent as to how disputes should be resolved. Plus, the factoring company may be able to bring their claims in the ongoing litigation if the issue arose out of the same project. For the most clarity on how to move forward with claims, it'd be wise to consult with a local Texas attorney who's familiar with factoring arrangements. They'll be able to review your agreement and other relevant circumstances, then advise on how best to move forward and get paid.

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Mar 18, 2020

well, the account has already in litigation and with the subs we are waiting for payment. We figured being able to report them to someone like the attorney gnereal to maybe recover some monies. Do you know if that can be done?

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Mar 18, 2020

Aha, I understand. If a business operating maliciously, illegally, or fraudulently, then making a complaint with the attorney general's office may help to put pressure on that business. Though, making a complaint with the Texas Department of Licensing and Regulation could do the same - and the bar for a complaint there would likely be a bit lower. Complaints with the attorney general's office or the licensing board won't lead directly to payment, I don't think. However, violations might serve as the basis for a claim against the contractor's license bond. Turning up the heat there could potentially move things along or encourage a settlement agreement, but when the matter is already being litigated, then the interested parties may not have much choice other than to see the matter through. But, consulting with a local Texas construction attorney could be helpful in identifying ways to move forward and collect the debt.

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