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Are there rules regarding the collection of a business debt similar to the Fair Debt Collections Act?Partnership is a bust, but my husband personally guaranteed a large lease. Can the leasing company turn the balance over to a debt collector without first making contact with us? Are there any rules that govern this sort of behavior similar to the Fair Debt Collections Act? Attorney answers (2)
The personal guarantee is covered by the FDCPA , and they can turn the debt once it is past due or even just due. Many agencies offer a sevice called pre-collect and just bill as though they were the original creditors. What you experinced was a policy by the leasing company not to waste time calling and sending letters, collectors refer to this as "sue no contact and garnish no contact' of SNC GNC that can be a choice or a demand of the original creditor as part of the collection agreement.
I have pasted a link to the FDCPA http://www.ftc.gov/bcp/edu/pubs/consumer/credit... Good Luck and God Bless 2 people marked this answer as good
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Answered about 2 years ago.
Corporate / Incorporation Lawyer in Tampa, FL.
The Business Debt is NOT governed by the FDCPA, and only a single roundly-criticized case holds that a business debt COULD give rise to an FDCPA claim (Moore v. Principal Credit). Cases like Slenk v. TransWorld Systems take the opposite approach (although the facts in the Slenk case made it unclear to the appellate court whether the debt was business or personal, the court made clear that if the debt was business, the FDCPA would not cover it).
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Frederick William Schwinn, licensed in California and Kansas
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