3/11/2009 12:13:00 PM
3 dealer GM Group in Fone Logistics row
A row has erupted between Fone Logistics and 3 dealer GM Group over commissions worth up to £50,000.
The outbound call centre dealer, which has traded with 3 for four years, claimed Fone Logistics was refusing to pay commissions it was owed and was ‘making excuses’.
GM Group’s managing director, Mohammed Patel, said he was unable to pay
staff wages and call charges for the company because of the disagreement.
The dealer is not currently trading, and Patel claimed he has been told by Fone Logistics that he will not receive payment until he has made some new connections.
Patel said: ‘Why is Fone Logistics not willing to compromise and make part payment to us for staff wages? Despite having ample security of monies they owe to GM Group they are unwilling to compromise on the payment for connections made last week [27 February].’
GM Group, which is based in Blackburn and employs 80 staff, makes around 15,000 to 17,000 connections per per year.
Fone Logistics said it had refused payment because GM Group had failed to supply voice recordings of sales, one of which had resulted in a customer complaint. Fone Logistics added that GM Group was at risk of clawbacks from 3 by not trading, as it had no customer service department to complain to.
Fone Logistics managing director Ian Gillespie (pictured) said the company was in talks with the 3 network and had asked if it wanted to support the dealer.
‘In our dealer contract, if there is a suspicion of fraud or clawbacks from the network then we have the right to refuse payment. We have made a commercial decision to protect our own business.’
He added that the distributor had ‘found out last week that they were doing cashback deals’.
GM Group traded with Advantage for 12 months until moving to Fone Logistics, after a previous dispute over payment.