BUSINESS
Why You
Should Incorporate Your Business
Small
Business Debt Collection Laws
Intellectual
Property Defined
Small
Business Debt Collection Laws
In your 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.
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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 ure 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:
1) Give any credit-related information that is not 100
ccurate.
2) Tell anyone other than the debtor that you are collecting a debt.
3) 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. |
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