Collection laws regarding consumer vs. business debt

by Ryan
(Eugene, OR)

I have begun receiving letters from a company that has been "assigned" by a client regarding a past due account I had with the client.

I had signed up for the client's services back in 2007 for a business I was starting, which closed shortly after. I was sent some equipment from the company to help with the clerical side.

I paid for the months that I was in business with no problem, unfortunately, as expected when it closed, I was not able to pay. Shortly after, I received a letter from this assigned agency demanding the return of the equipment, which I did and now they are coming after me for the bill.

However, they have not identified themselves as a collection agency nor do any of their correspondence contain the mini-miranda. I also searched my state's business and collection agency registry and their name is not listed as licensed in my state so I have not paid any money they are demanding because I feel they are violating the FDCPA by not identifying themselves, or giving the mini-miranda or being licensed to collect in my state.

I have heard that business collection vs. consumer collections are different and follow different rules. Are business debt collectors required to use the mini-miranda or identify themselves as a collection agency?

Comments for Collection laws regarding consumer vs. business debt

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Jul 30, 2010
business debt collection
by: Gerri

Unfortunately, business debts are not covered by the Fair Debt Collection Practices Act, so those requirements do not apply. There may be state laws that apply to your situation, so it may be helpful to consult a consumer law attorney, especially if a large amount of money is involved.

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