(Add to Favorites | View All Articles | Resource Directory)
|
|
|
Dont Let Your Small Business Fall in the FDCPA Trap
When someone owes your small business money, you certainly feel like a victim. But did you know that if you aren't careful, you could break the law by trying to get the money back? How to Break a Federal Debt Collection Law You have a small business, and your bills are coming due soon. You could easily pay those bills if a few thousands dollars of overdue invoices were paid. It's time to give your clients a few friendly reminders: 1] You call up the biggest debtor at his home number. The debtor's girlfriend answers and you leave the message that you were just calling to remind her husband about the invoice you had sent last month. 2] You get into an argument over the phone with the next debtor. In the heat of the moment, you say you're referring the debt to you attorney--when in reality, you know you can't afford to do that. 3]It's getting late--in fact, it's already after 9pm. But you know that debtor number 3 tends to stay up quite late, so it's practically midday for him. So, you cheerfully give him a call and remind him about the invoice of a couple of months ago. Congratulations, you may have just broken a federal law three separate times. Plus, you could be sued for it. Collections Laws Finer Points Have you figured out what collections law you broke yet? It's the Fair Debt Collections Practice Act (FDCPA), the federal law for collections. Meant to protect consumers from harassment, it has a clear list of things you can't do. Let's look at what you did wrong in the last example: - Never tell someone other than the debtor that you are calling about a bill. You can, of course, leave a message that you called. You can even call someone simply to find out if they know if a hard-to-reach debtor has moved house. But you cannot under any circumstances let on that they owe money. Simply leave your name and phone number as with any other "call me back" telephone message. -Never claim to be involving an attorney when you are not. Of course, this might seem like a soft area of the law, since intentions are fuzzy. But, for instance, if it's clear that suing to recover the debt would cost as much as the debt itself, your bluff will be obvious in retrospect. To be on the safe side, don't ever claim to have involved your lawyer. -Never call before 8 am or after 9 pm, unless you have the explicit permission of the debtor. But unless that permission is in writing, you're safer not calling during those hours, anyway. Of course, it's not strictly this simple. For instance, the law is only supposed to apply to consumer collections, not business collections. But with home business and telecommuting blurring the line between work and home, you're better off following the law's dictates in every case. Plus, the law has numerous other protections for debtors--or traps for collectors, depending on your point of view. This is just one reason why you might want to outsource your over-aged accounts receivables to a professional service. If you want to learn Collection Laws, then visit http://www.debt-collection-laws.com for the latest information on debt collection laws and collection agency regulation.
MORE RESOURCES: News provided by Yahoo! News and Google News Small Business Administration releases states’ small-business profiles Small business: How to tackle volatility BUSINESS TIPS: Internet presents a new market Is Facebook advertising right for your small business? Small business notes: Harley to offer leasing program Small biz and targeted tax breaks moving in Fla. House - Bizjournals.com Ask SmallBiz: Requesting Public Records for Your Business - Hawaii Business Magazine Take a small business health check Small Business Tax Obligations: Payroll Taxes Parallels: Windows-on-Mac Guys Say Small-Biz Software is Sexy - Xconomy |
|
|
|
RELATED ARTICLES
Why Clean Mobile Homes for a Business? Manufactured and Mobile Home owners know that the weather this year will be quite harsh. It's imperative these owners to clean out rain gutters and debris from on top of their homes. Getting Behind in Your Work? You Need a Virtual Assistant! If you don't know what a Virtual Assistant (or VA) is, don't worry. I only came across the term myself about a year ago. Franchisor; Ongoing Support and Ideas Ongoing support for a franchise system is omnipotent. A major part of any family relationship is communication. Franchise Sales and Use of Online Franchise Directories Franchising Directory Sites-Paid Advertising, Lead Generation for FranchisingFranchising Directory Sites are not doing the Industry any good. Typically they charge a fee for advertising per month or charge per sales for the lead, there must be 50 such sites. How to Start a Paper Shredding Business Paper Shredding Business Opportunities are blossoming up everywhere because in recent years, privacy concerns and new policies have forced companies all over the country to invest in paper shredding services. Large corporations and small are in need of shredding services. Genius Time? It Matters I frequently give presentations at small business gatherings, providing me the opportunity to have engaging conversations with owners about the challenges they face. Based on their input, the economy continues to plug along, heading in the right direction, and distancing itself from the difficult journey of the past few years. Bad Regulators Cost Small Businesses When a regulator finds a target to go after to collect fees to insure next years budget, often it is a small business. In fact the definition of a small business includes what normal people might even think of as a medium sized business. Beginning an Internship Program CONSIDERATIONS FOR YOUR INTERN: Specify the number of hours the intern will be needed each week. Will specific hours be adhered to, or will the schedule be more flexible? Applicants want to know up front what they will be paid, if anything. Temporary Staffing Agency: How to Start The temporary staffing industry continues to expand, with yearly double-digit growth being commonplace. Companies find it convenient and cost-effective to work with a temporary staffing agency to fulfill unforeseen demand, fill short-term vacancies, and assist with changing workloads due to restructuring or mergers. Reverse Merger: Have They Taken the Reverse out of Reverse Merger? Are the promoters and consultants destroying the market for Reverse Merger? First lets take a look at reverse merger. In a Reverse Merger, an operating private company merges with a public company that has little or no assets, nor know liabilities (the "shell"). Recognizing Employees' Contributions Can Go a Long Way Every employee would like to earn as high a salary as they can at their job but surprisingly it's not the number one motivating factor for them in the workplace. Human resource surveys indicate that wages are not even among the top five motivating factors for an employee. Increase Profits With a Small Investment of Time and No Money The less a business pays for goods and services the more profit that business generates. How does a small business with limited purchasing power get access to lower cost goods and services? The answer is simple. Freelance Tips: How to Cope with Spring Fever When Theres Work to Be Done We all know how glorious those first warm days of spring feel. The trees are blooming, the birds are singing. Consistency Builds Trust You know your prospects need what you sell. You know they want what you sell. A Lesson From "The Apprentice" That Can Make You A Master I have to admit, I was curious. When I saw previews of a new show called "The Apprentice," it made me want to at least watch the premiere to see what was going on. Earn More Money in Your Small Business by Creating a PIG If you really want to earn more money with your small business than you need to strongly consider adding a P.I. Boat Hull Cleaning Procedures for Owners and Detailers For really tough boat hull cleaning you will need to break out the acid. Muratic acid is the best for this. Job Costing - Do You Know How? What's your job profitability? I meet with business owners every day that are unsure of their profitability at a company or job level. They "think" they are making money because they have a few dollars in their checking account. How to Wash Mobile Homes as a Business Washing manufactured homes, mobile homes, can be a lucrative and steady business. Generally Mobile Home owners desire to have their mobile homes washed twice per year. Building Your Business for Success in 2005 It's a strange anomaly.Most people who set out to start their own business, no matter what type, build it for failure, not success.
|
| Home | Site Map | Privacy Statement | More Articles |
| © 2006 |