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Why Fedex will never take you to court(in my opinion)


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Having read this

Default Re: Royal Mail Customs handling Fee Response

all what follows is pretty well useless

 

Oh dear

Looks like I have missed the boat.

 

 

Hi all,

Having had some time to think about my situation with FedEx a few ideas have surfaced. But before I start I will apologise in advance to anybody who may feel that I have misrepresented or distorted the facts to justify my hypothesise about the subject. These are just the type of thoughts and ideas that wander through one’s head in the early hours of the morning. So here I go.

FedEx et all will never take any one to court over the admin fee as it stands to loose a massive revenue stream if it looses the case.

Why?

Current business model for £100 value item of weight 500gms for a casual importer.

Offer to ship item for £22 from China to UK house address. Deliver said item to address.

Send recipient a bill for customs fees (£30) and admin charge (£12).

Previous year’s Model of costs £22 carriage and £8 admin.

Hypothetical next year’s carriage cost £22 and admin £18. This is looking very good.

Next year cost £22 and admin £24. This is looking even better.

They have kept their offer price of carriage fixed at £22 but increased their revenue by approximately %150. And it gets better still. The logistics of getting a parcel from China to the UK is no small challenge. Whereas a few key taps on a PC key board is generating more revenue.

It would appear that FedEx should become an admin company and subcontract the carriage

I know that is could be viewed as quite simplistic, but it should give one a flavour of the idea.

Well what about the other carriers. It would appear that they are all doing the same.

Where is the competition? No need to increase your quotes just increase the admin.

Cartel? Transparency? Confusion?

So, If you refuse to pay what will any of the carriers do? Well originally not a lot. I noticed that most successful results against Fedex are historic. If you complained they would waive the admin cost.

However a recent visit to Controlaccounts web site boasts

For a leading global freight company weimproved cashflow by 12%, see how we can do the same for you.

And who might that be?

Now this is the Nub of the issue. Fear and threats work on most people where money is concerned and getting a DCA involved allows FedEx to be hands off. Threatening to sue clients is not their businesses. Also the task of defending your action against such a barrage of threats is quite daunting especially for £12 along with no guaranteed chance of winning against the might of a giant international corporation and no clear precedent. The outcome is pay up. However if by chance a valiant knight comes to the rescue and challenges the Dragon what might happen. Without doubt, FedEx would walk away long before it went to court as the last thing it wants is a precedent to be established about this very grey area against the plaintive. Why? They could lose, and that risk of £12 vs. £10000’s of annual income is not a good bet.

And so for as long as this situation lasts one has two choice (1) pay up and shut up (2) Do not pay and be prepared for a long unpleasant time of threats, abuse, fear, anxiety, lasting over many months that should result in no £12 admin fee being paid.

Edited by sturgm
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