FDCPA version for biz collections??

RacerX · 12-13-2007, 04:17 PM

I know the FDCPA doesn't apply to collections regarding a business debt, but I was wondering if there is anything along the same lines.... something that would offer some measure of rights for the individual.

Thanks!!

-R

jlynn · 12-13-2007, 05:04 PM

You would have to look at your state's statutes.

hannah · 12-13-2007, 05:06 PM

UCC both federal and state.

RacerX · 12-13-2007, 05:27 PM

That's what I kindof figured.

Oh well. At least I have a place to start looking.

Thanks!!

-R

cracrap · 12-15-2007, 08:58 PM

unless the business account debt originated from consumer transactions..then the fdcpa applies

RacerX · 12-15-2007, 09:01 PM

Meaning what? Like if a personal credit card was used to buy supplies for a business?

-R

Enigma · 12-15-2007, 10:38 PM

Quote:

Originally Posted by RacerX

Meaning what? Like if a personal credit card was used to buy supplies for a business?

-R

No.

Enigma · 12-15-2007, 10:47 PM

Quote:

Originally Posted by cracrap

unless the business account debt originated from consumer transactions..then the fdcpa applies

That's an extremely fine line. Where the OC and CA may not have knowledge of, especially if the CC is in the name of the business.

Further, you should not use a business CC to make personal purchases. It can carry very negative tax implications.

cracrap · 12-17-2007, 08:20 PM

thats true...but nevertheless, if the debt originated on the biz account was used for consumer purchases then the fdcpa applies
...the tax implications are a seperate issue from the fdcpa violations....

Hedwig · 12-17-2007, 08:51 PM

I'm not sure of that. If the card is in the business name, it would be presumed to be a business transaction. At least, if I were the CC company, that would be my position. You applied for a card as a business card, subject to Ts & Cs for a business.

Enigma · 12-17-2007, 09:01 PM

Quote:

Originally Posted by cracrap

thats true...but nevertheless, if the debt originated on the biz account was used for consumer purchases then the fdcpa applies
...the tax implications are a seperate issue from the fdcpa violations....

The CC would have no way of knowing that.

I've seen some business terms and conditions expressly forbid consumer based purchases.

From Citi Bank:

Quote:

By submitting this Application, you request on behalf of yourself and the Business that Citibank (South Dakota), N.A. (Citibank) establish a CitiBusiness® Card account ("Account") and issue a CitiBusiness® Card ("Card") accessing such Account, to you and any additional Cardholders you have designated. You understand that all information provided in this Application must be verifiable and accurate. Both you and the Business shall be liable individually and jointly for all charges and balances on the Account. The Account established and Cards issued hereunder shall be used for business purposes and shall be governed by the cardmember agreement ("Card Agreement") provided when the Card is issued, and as it may be amended from time to time.

Hedwig · 12-17-2007, 09:04 PM

I know that we're not allowed to use our company card for personal expenses. The consequences can be severe.

Enigma · 12-17-2007, 09:09 PM

Quote:

Originally Posted by Hedwig

I know that we're not allowed to use our company card for personal expenses. The consequences can be severe.

Recently in Miami-Dade, several employees were arrested and charge with Grand Theft, Fraud and several other charges for making personal purchases on the county business card, but that's another story.

Hedwig · 12-17-2007, 09:42 PM

True--that's government. But if it were a big amount or repetitive in our company, the penalty can include termination of employment.

I have an expense that I charged that the company may decide not to reimburse, but because of the nature of the charge, it would not cause any problems as long as I pay it. It's something that's subject to local management approval, and no one would commit to either approving or disapproving. So I did it and put in an expense form. If they reject it, there is sufficient record that it is normally a reimbursable expense.

However, the employee who charged the trip to Vegas for himself and his wife didn't fare so well when he got caught.

cracrap · 12-18-2007, 10:00 PM

theyll cancel the card if its used for consumer purchases..i know...i have them and ive done it...there are no legal ramifications for using a biz card for personal purchases,its only a violation of the tos and a business card is their designation for the card, not a law...
and uncle normie has posted caselaw on this if i remember correctly..i asked this same question a while back because i did it...

Enigma · 12-18-2007, 10:45 PM

Quote:

Originally Posted by cracrap

theyll cancel the card if its used for consumer purchases..i know...i have them and ive done it...there are no legal ramifications for using a biz card for personal purchases,its only a violation of the tos and a business card is their designation for the card, not a law...
and uncle normie has posted caselaw on this if i remember correctly..i asked this same question a while back because i did it...

I have clients who had the IRS disallow all business deductions because they purchased personal items with a business style credit card and tried to write the items off.

The reason why the CC issuer wants it to remain strictly business purchases is; 1) if you default it's not governed by the FDCPA, 2) purchases are not protected by the FCBA, 3) different usury statutes may apply, 4) the FCRA may not apply.