Expert: Christine Janklow - 4/13/2007

Question
Hello Ms. Janklow,

I started my business a few years ago and have recently ran into some problems with some slow paying customers. One of my suppliers, who I could not pay on time, called one of my customers, (who he does not sell)asked for the store manager, (who also happens to be related to me) and when he wouldn't take the call because he thought he was calling to solicit business inappropriately, went straight to the A/P department, told the lady who runs it that my company was one of his customers and that I said they were not paying their bills on time, and that I was not paying him and that he was sending me to collections. He also asked her if she knew of my relationship to the store manager. She said that she did. It has been revealed when he was hired so as not to appear as a conflict of interest. She asked him not to call again, as the matter was none of her business.
I wrote him a cease and desist letter, which he promptly turned over to his attorney. He turned me over to collections and filed in small claims court.
I tried to make payment arrangements with him just before he filed on me, but he slammed the phone down in my ear and that is when I heard from his attorney.
Now...I was just going to try to find the money and pay this thing ($3300), but it has come to my attention that he has been bad mouthing me to competitors and customers around town (and even forgive the first transgression) and it is hurting my business.
What are my rights, Ms. Janklow?
I'm sorry to give you so much history, but this is just so nasty.

Answer
Kathryn:
Thank you for your inquiry. No doubt a difficult situation for you and your business. I have inquired about your situation with some associates that have in depth knowledge regarding what the Fair Debt Collections Practices Act (FDCPA) provides to protect business owners in this situation. It seems that businesses are not regarded in the same manner as individuals that may encounter questionable collections activity by their creditors. It was advised that
you seek competent legal counsel, file a complaint with the FTC regarding the slander you have experienced, and contact your States Attorney Generals Office www.naag.org to seek additional advise. I hope this can help to resolve some of the damage that may have occurred by this unfortunate encounter. My best to you and know that if you seek you will  find the right answer to fulfill the need. If this answer was helpful to you, please take a moment to provide a rating and if you wish a comment. This will insure that others who seek advice on this subject will have the resources available for them as well.
Respectfully,
Christine Janklow