|The Fair Credit Debt Collections Practices Act
pertains to consumer credit and has very little
relevance to businesses that extend credit to other
businesses. However, people employed in business
to business collections should familiarize themselves
with some of the key elements of the legislation.
It simply makes good sense to act in a civilized and
businesslike manner when dealing with past due
|The FDCPA applies to:
Third party collection agencies
Check guarantee companies
|The FDCPA generally does not apply to:
Creditors collecting their own debts
Business to business credit/collections
|Consumers are protected against invasion of privacy,
harassment, abuse, false or deceptive representations,
unfair or unconscionable collection methods.
Prohibited acts include:
Contact at unusual or inconvenient times.
Contacting a debtor that is known to be represented by
Contacting a consumer at work.
Informing third parties of the consumer's indebtedness.
Contact that is harrassing, oppressive, abusive,
threatening, obscene or profane.
Repeated or continuous telephone calls intended to
abuse or annoy.
Representations which are false, misleading or
Falsely imply that the collector is affiliated with the
Threatening unlawful or unintended actions, including
|Business to business collections allows collectors a great
deal more freedom under this law than consumer
collections. However, it is advisable that business
creditors maintain the highest level of professional
standards when pursuing past due debts.
Generally, the final option in collecting on a delinquent
account is to file suit in a court of law. What you really
don't want to have happen is for evidence to arise that
shows to the court that you acted in a less than
professional manner in pursuing your claim. This can be
an embarrassment for both you and your company.
Always be professional in how you conduct yourself. For
additional resources, we suggest that you review our
database of standard collection forms and letters.
|For a full text of the actual act, you may follow this link.
|Who it Excludes
|Who it Includes
|What it Forbids