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Business Debt/Seizure of rental furniture

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Expert: - 7/30/2008


Question
Since collection agencies do not follow FDPCA guidelines when it comes to commercial collections.  Is there any type of guideline that they must adhere to?  They contacted my mother in Florida and repeat harass her with repeated phone calls also contacting my landlord and threatening him with lien to his property since he lease it out to me.They want him to allow them access in said premise. The furniture company is a public company with multiple locations. The parent company is in Virginia.  I dealt with the Boston Massachusetts location through its rental agent In my same county. The only location that has a certificate of authorization to do business in New York State is the Delaware location. After conducting my own search through the New York state corporation database. I am located in Suffolk County, New York.  Does that apply to furniture companies as well or is there a different guideline for them.  Furniture was delivered after initial payment was made and just my luck the check bounced. However the collection agency is claiming I had intent to to defraud. I have confirmation that furniture was received prior to check being sent.  They will not accept the over due payments they are stating that I defaulted and want the moneys for the remaining three year lease term which is equivalent to almost $69,000. My business had a large credit card charge back that came back unknown to me by visa because they do not notify you prior to charge backs.  They garnish then notify you to dispute thereafter and that is why the company check  bounce.  It was not intentional. I am in the process of dissolving corporation.since it has given me nothing but aggravation and continue with my other non for profit corporation.  Since it will be located  at the same address that collection agency has.  Will this become a problem of order is grated to seize property at commercial location if it is under a different corporation. Is it not required that the business name and address match to judgment and not one or the other. I have five year lease and cannot default in my office lease or will find myself in a similar situation once again.   PLEASE HELP...

Answer
Natalie,
Not all collection agencies violate the FDCPA. Yes, third party collectors must adhere to the FDCPA, FCRA and any state laws.  If the initial check bounced, you should replace that and any fees right away before they take legal action against you.  Depending on the amount of that check, this could be a felony. I am not clear as to what your questions are here, if you want to return the furniture for credit or are you asking about the bad check?

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Michelle Dunn

Expertise

As one of the Top 5 Women in Collections, one of the Top 50 Collection Professionals, and winner of the Business Excellence award, I can answer any questions about debt, debt collection, improving business credit, creating a credit policy, enforcing a credit policy and collecting on past due accounts. I can also answer questions in regards to starting a debt collection agency since I have been a bill collector for over 24 years, started and ran my own collection agency for 8 years, and maintain my 12 year old Credit & Collections Association for members of the credit & debt collection industry. I am also the author of the popular and award winning book "Starting a Collection Agency, how to make money collecting money" now on it's 3rd edition. This book has won a the Writers Digest self published award as well as the New York Book Festival Award. I am a repeat contributor to the Wall Street Journal, and have been featured on NPR, CNN, as well as many other national radio and television programs. I have also been featured in national publications such as the Wall Street Journal, Forbes, Smart Money, MSNBC and much more. I have 17 published books to my name and am an accomplished speaker and consultant. I currently write 9 columns for newspapers, magazines and online portals worldwide.

Experience

I have over 24 years experience in debt collection, I started and ran my own collection agency for 8 years and I am the founder & owner of my Credit & Collections Association that I founded in 1998. www.credit-and-collections.com

Organizations
My Credit & Collections Association, I was also a member of the American Collectors Association and Plymouth Chamber of Commerce for 11 years. I am a member of many writing groups as well as my local Women Inspiring Women chapter. I am a member of Know More Media as an expert for their blog on business credit.

Publications
Business NH Magazine, Smart Money Magazine, MSNBC, CNN, Forbes.com, The Wall Street Journal, Home Business Magazine, Entrepreneur Magazine and website, many books, newspapers and television programs as well.

Education/Credentials
I have written 17 books in my collecting money series and one for Entrepreneur Press called the Ultimate Credit and Collections Handbook. My newest book is being published by John Wiley & Sons in May titled, The Guide to Getting Paid, how to weed out bad paying customers, collect on past due balances and avoid bad debt. This book is also being sold to many colleges as a text book.

Awards and Honors
My book Starting a Collection Agency, how to make money collecting money won an award from Writers Digest and the 2007 New York Book Festival in the "How to" category. I have won 2 awards from Dun & Bradstreet and Governor Jean Shaheen. I was nominated as one of the Top 5 Women in Collections twice as well as having been selected as one of Collection Advisor's Top 50 Collection Professionals by my peers.

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