Pitney Bowes, Inc. (PBI)

STATEWIDE46 (21.22) Submitted: 3/28/08 12:31 AM : Start Price: $34.87 PBI Score: -3.62

PITNEY
BOWES INFLATES THE AMOUNT OF ACTUAL REVENUE THAT THE COMPANY RECEIVES BY CHARGING THEIR CUSTOMERS CREDIT CARDS IN SOME CASES FOR UP TO THREE YEARS AFTER THE CUSTOMER HAS CANCELLED THEIR EQUIPTMENT LEASES OF THEIR POSTAGE METERS AND MAILING SOFTWARE.MOST CUSTOMERS DON'T NOTICE THAT THEY HAVE BEEN BILLED BECAUSE IT COMES OFF OF THEIR CREDIT CARDS.IN SOME CASES THEY MAY HAVE MULTIPLE PIECES OF EQUIPTMENT AT MULTIPLE LOCATIONS AND ARE NOT AWARE THAT THERE ARE ADDITIONAL CHARGES BEING APPLIED TO THEM WITHOUT MERIT FOR SUCH LONG PERIODS OF TIME.THE WAY THIS CAN BE SUBSTANTIATED IS BY CAREFUL REVIEWING PITNEY BOWES ACCOUNTING PRACTICES SPECIFICALLY IN AN AREA OF PROCESS KNOWN AS "MECHANIZED ADJUSTMENTS" AT THE PITNEY BOWES FINANCIAL SHARED SERVICES DIVISION.PITNEY BOWES FINANCIAL SHARED SERVICES IS A CORPORATE FUNCTION WITHIN THEIR COMPANY.THE FINANCIAL SHARED SERVICES DIVISION CURRENTLY HAS A SKELETON CREW LEFT IN THEIR WORLD HEADQUARTERS IN STAMFORD,CT WHICH HAVE ALL BEEN LET GO FOR THE PURPOSE OF HIRING CHEAPER LABOR.THE EMPLOYEES RESPONSIBLE FOR HANDLING THE "MECHANIZED ADJUSTMENTS" HAVE BEEN REPLACED BY A LESSER PAID LESSER EXPERIENCED GROUP OF "TRANSACTIONAL SPECIALISTS" AS THEY ARE KNOWN IN THEIR TROY,NY LOCATION AT THE MAPINFO BUILDING.THE SO CALLED "MECHANIZED ADJUSTMENTS" ARE APART OF THE DAILY ROUTINE OF THE TRANSACTIONAL SPECIALIST.THE "MECHANIZED ADJUSTMENTS" ARE ACTUALLY A PROCESS OF MANUALLY GOING INTO PITNEY BOWES 1980'S MAINFRAME TECHNOLOGY COMPUTER DATABASE AND MANUALLY CREDITING OR REFUNDING THE OVERAGES THAT ARE CHARGED TO THE CUSTOMER BASICALLY COVERING UP THEIR TRACKS (WHICH I'D LIKE TO ADD IS PRETTY OUTDATED FOR A COMPANY WHOM CLAIMS TO BE ON THE CUTTING EDGE OF SOFTWARE AND TECHNOLOGY).THE REASONING GIVING TO THE EMPLOYEES BEHIND THE PROCESS OF THE "MECHANIZED ADJUSTMENTS" IS DUE TO THE FACT THAT THE COMPANY CANNOT AFFORD TO UPGRADE THEIR SOFTWARE(WHICH THEY ESTIMATE WOULD COST $1MILLION) TO RECOGNIZE THAT IT SHOULD STOP GENERATING A BILL TO A CUSTOMER ONCE THEY HAVE CANCELLED THEIR POSTAGE METER LEASE/LEASE MAINTENANCE AGREEMENT/SOFTWARE/METER ACCESSORIES.THEY ARE TOLD THAT THEIR JOB IS PART OF THE SOX AUDIT EVEN THOUGHT THEY DO NOT REALIZE THAT IT IS PART OF AN ACOUNTING SCANDAL/COVER UP THAT THEY KNOW LITTLE OF.SO IN ESSENCE PITNEY BOWES EARNINGS RECORDS DO NOT REFLECT THE TRUE AMOUNT OF REVENUE THAT THEY GENERATE BECAUSE SOME OF THOSE FUNDS ARE DUE TO BE CREDIT/REFUNDED BACK TO THEIR CUSTOMERS AND ARE UNRIGHTFULLY GAINED TO BEGIN WITH.I HAVE NOT HEARD OF ANY OTHER PERSON OR COMPANY THAT CAN MAKE THESE TYPES OF ACCOUNTING AND BILLING ERRORS FOR YEARS AT A TIME AND COVER IT UP IN LATER YEARS.THEY TAKE THESE ILL GAINED FUNDS AND INVEST THEM INTO PURCHASING 10YR NOTES AND OTHER COMPANIES LIKE GROUP1SOFTWARE AND MAPINFO, THEN RETURN THEM AFTER THEY HAVE GAINED A DECENT RETURN ON THEIR ILL GOTTEN MONEY.PITNEY BOWES HAS MILLIONS OF CUSTOMERS, SO THERE IS NO TELLING HOW MUCH OF THEIR ANNUAL "REVENUE" IS ACTUALLY GAINED IN THIS MANNER.MY BEST SUGGESTION IS IF YOU MUST DEAL WITH THIS COMPANY TRY NOT TO PAY BY CREDIT CARD.THEIR BILLING BY INVOICE AND CHECK IS ALSO OFF JUST NOT AS BLATANTLY AS THEIR CREDIT CARD PROCESSING WHICH IS HANDLED BY CHASE RECEIVABLES.PITNEY BOWES STOCK IS DOWN ALOT FROM THEIR 52 WEEK HIGH BECAUSE THE COMPANY JUST DOES NOT OFFER VERY MUCH AS THEY CLAIM TO, FOR SOME REASON THEY SEEM TO HAVE LITTLE IF ANY COMPETITION IN THE POSTAGE METER BUSINESS THAT SEEMS LIKE AN ANTITRUST LAWSUIT JUST WAITING TO OCCUR.I HOPE YOU FIND THE DETAILS INTERESTING AND NOTE THAT THEY CAN BE SUBSTANTIATED.

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