To complicate small business enterprises at home is not the debt collection laws?

The market for home-based business, sometimes called (small-office/home-office) SOHO market is booming. As more and more B2B businesses expand into these markets may be walking a fine line between B2B and B2C.

Why is it important from a legal standpoint? Federal debt collections laws tend to deal with the collection of consumer debt and business - including debt collection companies small - in a different way. Why you should alsoattention to the problems of debt collection law small business if we are not a collection agency? Simple: the border between invoicing and collection is just the very thin line between self-employed entrepreneurs and home based business.

Home Based Business Debt Collection Laws

In essence, there is much more strict protocols for the management of collections of consumers who are under the law business of collecting debt.The federal law of the consumer is the best collection of encapsulation in the Fair Debt Collection Practices Act. The essence of law is to prevent harassment. But in practice, compliance is not so simple. The law has a long list of things you can do, including reporting the debt of a threat of legal action or others without trying. How can the FDCPA getting into trouble with business owners in the home?

Possibilityambiguity in the recovery of claims Home

Fran's company sells pulp used in manufacturing cards and e-business. single market for the company for business. Dave, who owns a home business that has bought some stocks of paper, was not able to pay for its most recent order. Fran calls the number Dave has on file, which is the file in your home. Dave's daughter answers the phone, and Fran leaves a reminder for Dave to pay the outstanding bill. Fran just break thelaw?

The Fair Debt Collection Practices Act says that consumer debt can not be disclosed to third parties under any circumstances, unless the third party is a credit bureau or a solicitor. Dave's daughter is not. So, Fran has broken the law if Dave is a consumer. But she has not violated the law if Dave is a business. After all, you know that Fran is the daughter of Dave was not a staff member?

Most alarming of thishypothesis is that if Dave is a company or a consumer is out of control Fran. If Dave used the cardstock for business cards and postcards, it seems that Dave is a small business, collection laws do not apply. If Dave used the cardstock for the art project of her daughter, who is a consumer, not a small business, the right to charge applicable.

You can exempt your business debt collection laws?

Of course, if Dave hadexplicitly identified as a business with the order, as it uses the card does not matter. Perhaps Fran's company could have protected themselves by requiring customers to indicate whether they are companies or consumers to buy.

Of course, the above discussion should not be taken as legal advice. Nor is it very careful consideration of the legal rights of businesses small debt collection. But the fact that the simple task of Fran one to remembercustomer of a bill requires a careful legal review at all, is a wake up call.

In summary, the B2B company that relies on official business customers home have added a new layer of complication: the consumer debt or small businesses collections law. They also found a new reason to outsource their credit accounts in the account to a dedicated processor and collection agencies.