Bad Credit Report Impact If Not Paid

[bmeyers1980]

First of all, I would like to thank Oscar and Matthew for this informative website!  It's great to know the client I work for is not the only one effected.  

Back in late November, 2008, my client (since it is his small business) received the infamous Getty Letter demanding a Cease and Desist for removing the images on his website in addition to an invoice totaling up to $4,000 for three images there were used.  Sometime back, a third party web-designer was hired to design the website, apparently using imagery Getty is claiming to be copyright holder/owner of, but now in the presence of this letter, that third party designer is no longer within my contact or unreachable.  I almost wound up contacting Getty Images, but aside from a 1-800 number, the letter was not signed by anyone in particular, simply ending with "License Compliant Team, Getty Images."  Luckily, I did my research, and came upon several forums and websites (including this one) showcasing similar hassles from Getty which placed me, somewhat, at ease.  So at that time, I conveyed to my client's trustful secretary (my direct client/business proprietor was too busy with his work and meetings) that I decided NOT to engage in contact with Getty, despite having removed the questioned imagery myself immediately upon hearing of this letter.

Well, today (January 9, 2009; some time past the letter's December "settlement" deadline), I finally spoke directly with my client who is nevertheless concerned about ignoring or avoiding this altogether.  He just doesn't want to let this be "... ignored because, eventually, things come back to bite you...."  Understanding business tactics, he is under the impression that if Getty does not pursue this matter legally (considering that legal actions could surpass $4,000 for both parties), my client could be slapped with bad credit problems if Getty sends this over to collections.

So my question is this:  Has there been any recorded or known incident of an individual or small businesses suffering bad credit consequences if Getty's invoice and monetary demands are not met?  I understand that there is a service Getty utilizes, but are they that effectual and impacting??

So now I feel like I'm back at square one.  Sometime next week, he is expecting me to engage in contact with Getty to see, if somehow, a reduced amount can be established.  He even wanted me to set-up a phone conference with Getty, but just judging from what I have read here and on other forums, I doubt they could be that cordially accommodating.  And despite the Getty Letter arriving to his business in his name, I'm the one looking to cough up whatever the amount winds up being finally negotiated on.  

Nevertheless, I sincerely appreciate your kind reaction to my issue.

Thank you!!

Brad Meyers

[mappenzellar]

Did you read this post? http://www.extortionletterinfo.com/forum/read.php?2,287 it explains this issue.

[Oscar Michelen]

Dear Brad:
As mappenzellar says, take a look at the post "on being sent to collections"  In summary, this issue cannot affect a credit report as it is not a debt but merely a claim. When NCS recovery calls or emails, tell them immediately that you dispute it and will not deal with them and they will leave it alone and refer back to the getty compliance team.

[bmeyers1980]

Oscar and Mappenzellar --

Thank you so much for responding to my particular entry and for directing me to the posting on the Getty & NCS issue.  It is great to know that the invoice my client received is not necessarily a debt but a claim.  

Unfortunately, I foresee my client not seeing matters this way no matter how thoroughly I explain it to him.  He would be more concerned about the subsequent NCS call(s) or contact, and what action Getty may take after NCS has referred back to the Getty Compliance Team.  He certainly fears having a bad mark onto his credit even though your forum thorough explains this would not occur.

I don't know if there has been any incident where a small business proprietor yet to your knowledge may have already received such a post-NCS "action" by the compliance team has referred the matter back to Getty, and what was done, especially for a $4,000 amount.  

By the way, I am posting this from San Francisco, California, where my client's business is also established.  I guess it makes no difference that his business has switched from an LLC (when the letter was executed) to an Inc. recently.

Thanks again!

Brad Meyers

[Oscar Michelen]

Brad:

No one has ever been sued under this program - not since Getty started doing this in 2005,not in any country around the world!
So it is highly unlikely that your client with 4 images will be the first target. This is simply "legalized extortion" in my opinion. Getty tests the resolve of the letter recipients by increasing the pressure on them and by sending them legal letters that sound ominous.  I keep expecting the shape to drop any day now but it hasn't yet.  You have to ask yourself: if Getty's legal position was so strong why hasn't anyone ever been sued?

[bmeyers1980]

Hello Oscar and Everyone!

Again, Thank You for your generous and gracious replies to my concern regarding my client's small business and the demand letter.

Unfortunately, he recently received a second letter this past Friday (I haven't seen it yet, but he alerted me through an e-mail about it) which is undoubtedly touting the settlement claim demand.  At this point, I know my client has become very uncomfortable and is beginning to panic with the belief the courts will be next.  Despite my attempts at previously reassuring him his credit for him and his business would not be affected as a result of these "dire" demands, he perceives the letters as a legitimate, practical exercise by Getty without realizing of its extortionist and unreasonable tactics.  We immediately removed the images upon receiving the first letter though no subsequent contact was established to the legal compliance team of Getty.  Quite frankly, I did not appreciate the demand of the "invoice" and after seeing other defiant recipients of the letter in online forums and discussion boards, I took the stand which I have remained with to this day.

Now, I have re-read some other blogs and forums elsewhere where those who ignored the collection agency's demands (predominantly in Europe and the UK), the demand matter was escalated with threats of legal action which "would surpass the amount of the settlement demand," after (Euro and UK) collection agencies encountered resistance of the recipients:  i.e.:  Lawsuit.  

So at this point, and mostly to ease my client's willingness to succumb to their pressure, I plan -- with strong reluctance -- to engage contact with their legal compliance team to see if, somehow, the amount their seeking could be somehow reduced.  And despite my unfamiliarity with legal vocabulary, I am relying on my ability of diplomacy to hopefully see what could happen in writing instead of calling them.  What I was wondering is in my writing my correspondence to them if I could place myself "in the line of fire," meaning, to halt all correspondence with my client and to address all future matters to me?  What could be the consequences of this action?

But quite honestly, I'm at a loss despite many other small business proprietors who won't bend themselves to the hardening pressure of the Getty harassment policy.

Thank you again for the wonderful forum!

Brad Meyers
San Francisco, CA

[Oscar Michelen]

Be aware that they may not want to deal with you and insist that the "end-user" be the one in the discussion.  The lowest I have heard them go is $550 per image. Certainly by your corresponding to them and talking with them, you may expose yourself to liability as the web developer, but your client would be likely to sue you if they got sued and lost anyway. I highly doubt Getty will sue over three images, but many folks cannot stand the pressure and just want to pay it off.  I suggest you read the summary and other relevant posts to familiarize yourself with the talking points on the issue. Good luck and keep us posted.

[bmeyers1980]

Hi Oscar and Everyone!

As I mentioned in my previous post, I had not seen the second letter when I posted (on Feb. 1, 2009).  Well, I finally got to see the second letter, and what really stood out to me was a bold statement:

Your failure to make payment immediately will result in escalation to our Legal Department and the possibility of legal action being commenced for damages exceeding the amount presently being offered by way of settlement.

As you can read, there is no statement this matter will be forwarded to NCS or the like.  The following paragraph gives an e-mail and an 800 number, and signed License Compliance Team, but no particular individual.  Plus, there is no deadline date as to when to respond to them.

I have also decided not to place myself into liability by placing myself, despite what I mentioned earlier, of being "in the line of fire."  However, I still am taking this stand of not allowing their tactics to intimidate my client and me.

Brad Meyers