Small Business Receiving Collection Letters

[cstar33]

I have read all about how to handle personal collection letters but am wondering how to handle collection letters received by a small business. I am trying to help the company I am working for. Can we still send a cease and desist letter? It appears there was an agreement made with a previous ca that was not upheld and now the file has been transferred to Focus Receivables Management. Any idea on how to handle this?

Thanks!!

[Trish]

I do not have any personal experience with business credit but I believe it is very similar.....if not the same as personal credit.

Is it for a substantial amount? You never want to send just a C&D or they will have no other choice but to sue you.

[Scorepro]

I know this post is a little dated but, for what it's worth, perhaps my reply sn help. Actually, a lot of the rules you see mentioned on these boards are due to a host of federal laws that govern consumer debt, not business debt. So, in the business world, they don't have to validate the debt or any of the other many regulations that govern consumer debt.

Check and see if your state has any commercial debt statutes. In Florida, we do have some laws that govern commercial debt, albeit not as robust as those for the consumer. Also check and see if your state requires collection agencies to be licensed in your state in order to collect a debt. If so, check and see if this specific agency is licensed and if not, tell them they are not licensed and to take a hike. It will be a matter of time before it gets sold to another agency and then the process would repeat. If they are licensed, you don't have much recourse.