Understanding the FDCPA & how it affects you

The laws that business owners and third party collection agencies have to follow are different.  Many business owners are confused about whether they have to follow the Fair Debt Collection Practices Act.  

The FDCPA broadly defines a debt collector as “any person who uses any instrument of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owe or due or asserted to be owed or due another.”  

While the FDCPA generally only applies to third party debt collectors, not internal collectors or credit managers for a creditor or business owner collecting their own debts, some states (such as California) have similar state consumer protection laws which mirror the FDCPA.  In view of this be sure to check your states laws and the laws in the states you are collecting on.

Bio

Michelle Dunn is an award winning author and columnist frequently featured in the Wall Street Journal, CNN and Forbes. Look for her newest book being released in May by Wiley Publishing titled, "The Guide to Getting Paid, weed out bad paying customers, collect on past due balances and avoid bad debt, available for pre-order now on Amazon.