Collections Law/Bad debtor


Dear Mr. Steve,

I am currently running a small business selling spare parts to another company on 30 days credit term. It has been over 60 days and the debt has yet to be settled. 50% deposit was paid initially upon delivery but the remaining sum is not. Now the sum isn't large and I am tired of all the follow-up calls and I don't want to use lawyer for this "small" stuff. If I make it public disclosing this bad debt online at every social media like facebook and others so that other small businesses like me dealing with (or will deal with) this bad debtor may know it to be a bad paymaster and refuse to do business with it, will I be risking lawsuit from such disclosure? By the way, I have the signed invoice to prove this is not some made up stuff. Is there any section of the law that shines light on such matter? If I insist on such disclosure approach, do you have any suggestion on making this legally acceptable?

I strongly advise against doing what you are considering because you risk being sued for all sorts of things - libel, slander, defamation and interference with business relationships being the first I can think of. The truth of what you say is irrelevant - the cost of defending yourself will far exceed what you are owed.

Why not just sue this company in small claims Court and you be the plaintiff instead of the defendant?

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Steve Katz


Debt Collection, Credit Reporting, FCRA, FDCPA, TCPA issues


Founder of Debtorboards, co-author of Debtsmanship, former Collector, Credit Counselor


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