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Business Debt Collectors and FDCPA rules

Birmingham, AL |

I want to know if the FDCPA rules apply to companies that purchases old debts from the original creditor. A debt collection company is attempting to collect on a business credit card debt. They failed to respond to my request to validate the debt and amount, and continued to phone me at all hours, still after I asked them to cease the calls. Now they have turned the matter over to an attorney who escalated the alleged amount owed from $20,000 to $50,000.

Does the FDCPA rules apply to the junk debt companies that buy business debts? if so, how do I enforce these rules? Also, if the out of state attorney files a lawsuit, do they come to my area to take it to court?

Attorney Answers 1


Typically, the FDCPA only applies to debt collectors attempting to collect a “debt” which is defined by the Act as "any obligation or alleged obligation of a consumer to pay money arising out of a transaction in which the money, property, insurance or services which are the subject of the transaction are primarily for personal, family, or household purposes, whether or not such obligation has been reduced to judgment." Since this is a business debt and not for money used for personal, family, or household purposes, it is unlikely that it will apply to your situation. There is some case law which suggests otherwise, but very little, and I don't think most judges would agree to apply the Act to a commercial situation. You may have other common law avenues of recovery such as negligence, wantonness, invasion of privacy, harassment, fraud and misrepresentation, or deceptive trad practices.

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