DEATH SENTENCE TO "MOM & POP"

John Cockerham, now 66 years old, runs a small, family owned “Mom and Pop” type of business. He and his family invested everything and fought for years to build up the company and its reputation. The company grew to 10 employees, three service trucks, three national contracts and numerous industrial clients. They were on their way to success.

John was responsible for setting up all three of the ALL PRO ELECTRIC credit card business accounts. Having run a business with over 300 employees and 12 locations through the United States, John had always relied upon traditional banking for cash flow and credit cards for incidentals and convenience. The electrical business was different. Occasionally the company would need to buy materials that cost $100,000 - $200,000 and on a daily basis, the service electricians needed to buy gas and make numerous small material purchases. Additionally, all of the vendor suppliers took credit cards and this provided a 15 – 40 days float for the company’s cash flow. After talking with American Express representatives on a several occasions, John concluded that they offered a stable and dependable credit source that could grow with the business. Additionally, American Express offered perks that no bank offered.

John explains, “I was very careful in making my decision to use American Express exclusively for my cash flow banking needs. The American Express representatives led me to believe that our credit would not be arbitrarily reduced; that I could have multiple independent accounts not subject to interruption, and that the American Express business account services were ideally suited for my credit and cash flow needs.”

After securing one and then two cards, (with airline and hotel perks) the company was offered and accepted a Platinum Card with unlimited credit and extensive perks. For years John paid the balances in full each month and on one occasion with a $170,000 charge for a generator.
Looking back John explains… “Had I been informed at the outset that by doing business with American Express, would mean one day I would get a call from my stranded electricians informing me that they could not buy gas with the credit cards; I would not be able pay my employee salaries; have to lay off all my employees; not be able to pay for materials; not finish the jobs we were working; not bid new jobs; default on my mortgages; lose all company and personal credit standing; lose all of my retirement savings… never to retire; suffer financial embarrassment, humiliation, sleepless nights; stress rashes, ear peeling and anal itch… I would have declined American Express’s generous offer.”

All these things are true. American Express cut off the company’s credit without warning or regards to the damages of their actions to the business of All Pro Electric, Inc. its owners and John. American Express then followed up by raising the interest rate on the outstanding balances from 0 to 27%.

This is but one story of the many small businesses that face the death of their businesses at the hands of same the financial giants that “Mom and Pop” bailed out with their tax dollars and paid obscene bonuses to their executives.

The Final Insult: This year All Pro Electric and John Cockerham were sued by American Express in the 17th Circuit Court of Broward County for the outstanding balances on two accounts. The Defendants have countersued American Express for Breach of Contract, Fraud and Negligence.

The Defendants cannot afford a lawyer and have appealed to Florida’s 4th District Court of Appeal (Case # 4D10-2660) for permission of John Cockerham to represent his company in Circuit Court.

If the appeal is denied, All Pro Electric will not be allowed to defend itself and American Express will be awarded its claim… plus legal fees, penalties and its exorbitant interest.

That will be the death of this “Mom and Pop”.