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 collection laws for the latest information on debt collection laws and collection agency regulation.

efficient cleaning crew Northbrook ..
In The News:

Chinese hackers used Anthropic's Claude AI to launch autonomous cyberattacks on 30 organizations worldwide, marking a major shift in cybersecurity threats.
Apple's new Sleep Score feature gives you a rating for your nightly rest quality. Learn how to set it up on your Apple Watch and iPhone today.
Essential phone settings to enable before losing your device, including Find My network, location services and security features for iPhone and Android.
The Fox News AI Newsletter gives readers the latest AI technology advancements, covering the challenges and opportunities AI presents.
Cybersecurity research shows weak passwords remain a major threat, with simple patterns and number sequences putting millions of accounts at risk.
New Android malware BankBot YNRK silences phones, steals banking data and drains crypto wallets automatically. Learn how this advanced threat works.
FDA approves first human trial for Paradromics' brain-computer interface that could restore speech for paralyzed patients through neural technology.
New phishing platform QRR targets Microsoft 365 users across 1,000 domains in 90 countries. Learn how to spot fake login pages and protect your accounts.
OpenTable now uses AI to track your dining habits and share insights with restaurants. Learn what data they collect and how to protect your privacy.
Google's discontinued Nest thermostats still secretly upload home data to company servers despite losing smart features, raising serious privacy concerns.
New Android malware NGate steals NFC payment codes in real-time, allowing criminals to withdraw cash from ATMs without your card. Learn protection tips.
DoorDash confirms data breach exposing customer names, emails, addresses after social engineering attack. Learn how to protect yourself from scams.
Concerned about Google's AI scanning your Gmail? Learn how to disable Gemini features that access your emails, Drive files and Chat messages for privacy.
Google warns Android users about dangerous fake VPN apps hiding malware that steals passwords, banking details and personal data from phones and tablets.
Apple's digital passport feature lets iPhone users breeze through TSA checkpoints this holiday season using Digital ID technology at 250+ airports.
A new phishing scam targets family photos with fake "Cloud Storage Full" alerts. Criminals steal credit card information through fake sites. Learn protection tips.
South Korean scientists create ultra-thin fabric muscles that turn clothes into robotic assistants, lifting 33 pounds while weighing under half an ounce.
Archer Aviation has acquired Hawthorne Airport for $126M to launch an LA air taxi network ahead of the 2028 Olympics, featuring AI-powered eVTOL operations and next-gen aviation tech.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
Fake AI apps disguised as "ChatGPT" and "DALLĀ·E" are flooding app stores with dangerous malware that steals data and monitors users without detection.
Fake buyers demand specific vehicle reports from unknown sites to steal credit card information from car sellers, but warning signs can help identify these scams before paying.
Android users can now manage apps across multiple devices more easily with Google Play Store's updated remote uninstall button in the latest update.
NASA's Perseverance rover discovers shiny metallic rock on Mars that could be a meteorite from an ancient asteroid, containing high levels of iron and nickel.
Holiday scams spike during Black Friday and Cyber Monday as criminals exploit your leaked personal data. Learn how to protect yourself from fake stores and phishing.
Commerce Department proposes TP-Link router ban over Chinese security risks. Learn how this potential prohibition could affect your home network and devices.

Wichita Kansas is a Great Place to Run a Business

We love Wichita because it has great all round weather... Read More

Cleaning Grain Silos, Towers, Containers, and Combines

If you run a pressure washing company in a rural... Read More

Successful Small Businesses Use PR

It's obvious when a small business has accepted the fact... Read More

Mattress Cleaning Business: How To Manual

A Mattress Cleaning Business might be just for you if... Read More

More Rules for Franchising?

The FTC- Mighty Federal Trade Commission has unilaterally decided to... Read More

California Department of Corporations Attempts to PR Their Benefits to Consumers

On Monday the Department of Corporations in California revoked franchise... Read More

The Key to Small Business Growth? Buyer Alignment

Unfortunately for all buyers, each selling organization and their individual... Read More

Pressure Washing; How to Bid Concrete Cleaning Jobs

Remember the cleaning business is all about time ratio to... Read More

Presentations and Sales Automotive Detailers

Many auto detailers fall short in their sales presentations. I... Read More

City Wide Garage Sales: Hidden Riches!

Most of us remember going to at least one garage... Read More

How to Profit Handsomely From a Secret Business Model Virtually No Small Business is Using!

Have you been searching for the perfect home-based business? I... Read More

Racing the Competition

What is the Big Race all about when it comes... Read More

1 Overlooked Key to Small Business Success

Is this you?You dreamed of owning your own business, doing... Read More

Grants vs. Contracts

Commonly folks have asked me what the technical difference is... Read More

Business Owners - Do You Actually Own a Job?

How many hours do you work a week? When was... Read More

Change May Be Your Ace in the Hole

Whether it has been thrust upon you by external market... Read More

Going Public by Way of Regulation D (504) Offering

Under the Securities Act of 1933, any offer to sell... Read More

Business Relationships Defined

What makes a business relationship?What really makes a business relationship?... Read More

Venus Transit - and Small Business?

On June 8, 2004, the world witnessed what no one... Read More

Top 7 Small Business Tax Tips

Here are seven ways for owners of small businesses to... Read More

Will Adding a Car Wash to Your Fast Lube Add Additional Crime to Your Facilities?

Car Wash Crime in the Hood. Apparently not everyone is... Read More

Small Business No How - Dont Give Away the Farm

You're pretty proud of yourself! After all, only four months... Read More

Hone Your Edge, Stay Focused

A common hazard faced by new entrepreneurs is a lack... Read More

What is your Motto?

Company mottos can easily be printed on a business card.Sometimes... Read More

Buy a Flower Shop: Serious Considerations

You've always liked flowers and you think the idea of... Read More

cleaning lady near Wilmette ..