Many entrepreneurs and business owners don't think the Fair Debt Collection Practices Act (FDCPA) pertains to them or their debt collection practices. This may be true in some instances but a smart business owner knows that they should be familiar with this law if they are doing business and extending credit.
The FDCPA became effective on March 20, 1978 and covers the collection practices of third-party debt collectors, including attorneys who regularly collect debts for business owners. If you utilize the services of an attorney or collection agency you should know that:
- Business owners, or credit grantors' collection practices are covered by this law in certain circumstances.
- Business owners should know what the attorney or collection agency they use may and may not do under this law. Remember any service you utilize is a reflection of your business and its practices.
- Business owners could be covered under similar laws or legislation in the future and want to abide by these laws.
- Business owners may be liable with respect to any third-party debt collections done on their behalf under Section 5 of the Federal Trade Commission Act and in some cases under state laws.
Be educated and be succesful!
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