The Internet and the New Face of Debt Collection - Collection by Shame

Details how a new wave of complaint websites are extending beyond simple consumer complaints and into business-related debt recover.

(PRWEB) October 1, 2004 -- Almost since its inception, the Internet has provided a forum for individuals with a grudge to come out and say it. In the early days of the Internet revolution, consumer complaints about the way they were treated by a corporation or business were largely unorganized and uncoordinated postings made to a variety of unrelated forums, and carried little weight in the real world.

As the Internet has matured, the ability for individuals with a gripe to get their message heard has grown, with several hundred websites dedicated to the ethical, moral and legal behaviour of specific companies finding their place on the Internet landscape. In fact, this kind of website is so prevalent that the Open Directory Project has over 60 categories of these kinds of sites (http://www.dmoz.org/Society/Issues/Business/Allegedly_Unethical_Firms/). Not only have the number and popularity of these websites grown, but the weight they have been able to carry in disputes over consumer complaints has often led to significant changes in company policies, and in several cases, have provided the base for class action lawsuits.

In the past these websites have been limited to consumer-company disputes and complaints, with business-business still settled through debt recover proceedings and legal action. Recently, however, a new wave of websites dedicated to the plights of small businesses and freelance workers in their dealings with other companies have begun to emerge. This new wave of website seeks to draw attention to unresolved disputes, such as debt collection and delivery disputes, in order to shame the other party into meeting their legal obligations.

The biggest winners out of this new wave of websites would appear to be small international businesses, where legal action across international boundaries is usually far more expensive than the cost of writing off a debt or disputed contractual obligation. A prime example is the website WAPA Translations Sux (http://geocities.com/wapatranslationssux), where freelance workers with disputes against the parent company have banded together to state their complaints in a public forum. In this case, the individual members have neither the resources nor the knowledge required to engage in international legal action, and have instead opted to produce a website detailing their complaints.

While it is unclear if this new trend in websites will catch-on across the board, the continual growth in the number of companies and individuals doing business across the Internet combined with the growing importance of a company's online presence and image is bound to contribute to the number and variety of such websites.