In your small business debt collection laws will eventually become important, as your debt grows and some clients do not pay. To collect small business debts legally, you must send a written notice that collections have begun, within five days of first contacting the debtor for collections. The letter must include dispute instructions.
Small Business Debt Collection Laws Forbidden Practices
- Collect any amount beyond the actual debt, unless you really can do so legally.
- Continue collections on a debt if the debtor has disputed the debt, unless you provide the debtor with written proof.
- Continue contacting the debtor if within 30 days of first contact, the debtor disputes the debt.
- Credit a payment the debtor has made to a non-disputed debt to a debt the debtor has disputed.
- Deposit a post-dated check before the post-date.
- Small Business Debt Collections Laws: What You Can't Say
- Give a false name.
- You are an attorney or government representative, if you are not.
- You have an attorney working for you or that you are going to assign the case to an attorney, if you really do not.
- The debtor has committed a crime, unless you are 100% sure they have.
- You work for a credit bureau, if you really do not.
- The debt is more or less money than it actually is.
- You are sending or have sent legal forms when you really did not.
- You are sending or have sent papers that are not legal forms, if they really are legal forms.
- The debtor will be arrested--no one is arrested for nonpayment of debts anymore.
You will seize, garnish, attach, or sell the debtor's property or wages, if you do not really intend to or cannot legally do so (and unless the debt is secured with collateral, you probably cannot).
You will sue or take other legal action, if you do not really intend to, or are not legally able to do so.
Small Business Debt Collection Laws Forbidden Third-Party Disclosures
Never:
- Give any credit-related information that is not 100% accurate. Tell anyone other than the debtor that you are collecting a debt.
- Telephone any number other than debtor's more than once.
Small Business Debt Collection Phone Calls
Never:
- Call after 9 pm or before 8 am.
- Forget to give your name and your company's name.
- Call repeatedly or in a way intended to annoy.
- Make a collect call.
- Make any threats.
- Use profane or obscene language.
- Leave a message that reveals this is a debt collection.
Small Business Debt Collection Mailing
Never send:
- Postcards.
- Envelopes or mailings with any reference to debt collection on the exterior.
- Anything that looks like an official, legal, or government document, if it is not.
These simple small business debt collection laws guidelines should help stay with the collection laws.
If you want to learn collection laws, then visit collection laws for the latest information on debt collection laws and collection agency regulation.
no-contract cleaning service Des Plaines ..Most doctors never distinguish the difference between customers and patients.... Read More
Where do you find more customers?How do you compete with... Read More
A consultant must remember that the business belongs to the... Read More
WHEN you are operating or planning a small business that... Read More
Q: After years of dreaming about starting my own business,... Read More
Remember the training programs, seminars, and workshops you had to... Read More
Have you ever heard the phrase, 'PREPONDERANCE OF PROOF'?I recently... Read More
I only have to point to the 555 plus failed... Read More
When is it a good thing to say no to... Read More
After over thirty years advising small business it still comes... Read More
Car wash businesses are unique to other businesses. In fact... Read More
The temporary staffing industry continues to expand, with yearly double-digit... Read More
What image do you and your people portray to your... Read More
When you feel like you're always busy working on your... Read More
There are both fixed and mobile detailers. Consumers often will... Read More
The following tips have come from a wide variety of... Read More
Does your small business have a banking and credit card... Read More
Cash is King... That is what everyone tells us and... Read More
How often have you thumbed through a business opportunity magazine,... Read More
The start of a new year is a time for... Read More
One thing I have noticed in my travels to different... Read More
What is a Virtual Assistant?? A Virtual Assistant is that... Read More
You can't imagine how many people ask me how I... Read More
Contrary to popular belief, small businesses can survive a crazy... Read More
"So what?" is a lovely question.It can lead to a... Read More
bathroom cleaning service Lake Forest ..A reader of one of my online sessions asked should... Read More
Incorporation in Nevada has become an attractive option for savvy... Read More
This morning, I went to take a short walk outside.... Read More
There are many choices when thinking about a small business... Read More
How often has someone thought of starting a business based... Read More
As a business owner, you already know how important it... Read More
Ok, you have successfully accomplished your dream of being the... Read More
"I don't know the key to success, but the key... Read More
If you really want to earn more money with your... Read More
Who is responsible for maintaining the business relationship?Nurturing a business... Read More
I started working with another new client last week. He... Read More
If you're starting your own business or currently work for... Read More
Over the years I heard the best way to learn... Read More
The Franchise Group at the Federal Trade Commission in all... Read More
Thankfully, most of us will never find out. That is... Read More
Q: After years of dreaming about starting my own business,... Read More
Sometimes the simple businesses are the ones, which make good... Read More
Here are some useful tips on what to consider before... Read More
What is the best time to expand a mobile car... Read More
You've always liked flowers and you think the idea of... Read More
So you want to start a business but you don't... Read More
Lance Armstrong this week won an unprecedented 7th Tour de... Read More
Macon, GA goes after garage-gas station conversion detail/hand car washes... Read More
When you feel like you're always busy working on your... Read More
When a person knows and knows not that he knows.... Read More
Small Business |