The claims, filed in Los Angeles Superior Court’s Small Claims division, total $10,000 and are for back payment for two months of advertising.
“This company has made zero percent indication that they will pay our bill,” Sommer told XBiz. “They’ve had an advertisement in Cybersocket for six years, five on the back cover. And now it is almost impossible to get a hold of the people who run the show in Florida.”
But what Sommer is most upset about is that he referred many online adult companies to the processor’s services. And many of those companies are now out of business.
“Some of my closest business acquaintances have been affected, even some of the larger companies,” he said. “There is one company I know that is owed between $300,000 and $500,000 from iBill.”
“We trusted them, and now some are closing up shop. This company has gutted the ability for some of the industry to function.”
Sommer even said that he has temporarily suspended billing with at least four advertisers that have been affected by iBill’s nonpayment of credit card processing.
Since late last summer, iBill has been nonresponsive to scores of online adult companies that did business with the Deerfield, Fla.-based company.
IBill was having cash flow problems at the time, after its agreement to handle Visa card transactions with First Data fell through.
After a series of transactions, the company is now owned by Interactive Brand Technologies, or IBD.
Sources from IBD and iBill did not return phone calls to XBiz for this story.