Question:
Quite some time ago, I bought out a partner's interest in a business. The
agreement was between me as an individual and the partner as an individual,
and included a payment structure. He also owns another business and
occasionally employs a collection agency to collect overdue accounts. Due
to some downturns in my earnings, I have been unable to meet the payment
terms of my agreement with the former partner, and have an small balance
outstanding. His collection agency has begun calling me at work and has
called daily for the last 5 days. The first 2 days, I wasn't there and the
collector just left a message for me to call. The third day I spoke with
him and found out what he was calling about, informed him that it was a
persoanl obligation and gave him my home phone # which he was supposed to
call me at later that afternoon and never did.
The 4th day I called the former partner and he said he would call the
collection guy off if I promised to at least send him something, which I did
and we ended our conversation very ammicably. Later that day the collection
guy called me at work again and just wanted to know a check # and the amount
of the check. I told him about my conversation with the former partner and
told him to talk to the former partner. After a brief argument, he said he
would and then he'ld call me back.
The 5th day he called me again at work asking for a check # and an amount.
Needless to say I was pissed, and got into an argument over him calling me
at work for a personal obligation. Even though others can only hear one
side of a phone conversation, it is embarrassing to be talking with a
collection agency while at work. He insisted that it was a business matter
and insists on calling me only at work. Technically, the business is now an
S-Corporation and I am an employee of it. I took down his name and adress
and told him I was going to report his tactics and hung up on him because he
wouldn't shut up.
My questions...Can a collection agency do this? Who do I file a complaint
with? All documentation involved with the transference of the business is
strictly between 2 individuals, and there it amounts to an unsecured loan.
Funny, if it were secured by the business he could share in it's losses last
year and would owe me money.
Answer:
The Fair Debt Collection Practices Act applies only to *consumer*
debt. As this is a business debt, it doesn't apply. State law may
apply, however.
I would suggest that the original poster speak with a local bankruptcy
attorney. Whether or not the decision is made to file, most bankruptcy
attorneys are very familiar with debt collection requirements and can
properly advise him how to proceed.
