A debt collection employee has defaulted on a loan. Can I send him to his own

[a thorn]

FL-
My Business loaned money to a person who works for a debt collection agency in town. After the loan, they defaulted immediately and stopped communicating with me. I have an account with their company. Can I send this person's debt to his own company for collections?

 

[Zigner]

FL-
My Business loaned money to a person who works for a debt collection agency in town. After the loan, they defaulted immediately and stopped communicating with me. I have an account with their company. Can I send this person's debt to his own company for collections?

Yours is not really a legal question...

If you send the debt to the collection agency, the person might get fired. I have to point out that, if you want to collect, getting the person fired may not be the best way to go about doing it.

 

[a thorn]

Yours is not really a legal question...

If you send the debt to the collection agency, the person might get fired. I have to point out that, if you want to collect, getting the person fired may not be the best way to go about doing it.

I was not sure if sending him to this company would be considered a violation of the Fair Debt Collection practices Act since it is also his employer.

 

[Zigner]

I was not sure if sending him to this company would be considered a violation of the Fair Debt Collection practices Act since it is also his employer.

Why not just sue the person and be done with it?

 

[a thorn]

I'm not allowed to add any interest, legal fees, or filing fees to the type of loan I gave making small claims pointless. I imagine this person knew that from experience in the industry and took advantage of me.

 

[Zigner]

I'm not allowed to add any interest, legal fees, or filing fees to the type of loan I gave making small claims pointless. I imagine this person knew that from experience in the industry and took advantage of me.

What kind of loan could you have given that restricts you from collecting filing fees?

 

[single317dad]

I was not sure if sending him to this company would be considered a violation of the Fair Debt Collection practices Act since it is also his employer.

As you are the entity who originally extended the credit, you cannot violate the FDCPA.

As a debt collector, the debtor's employer is bound by the restrictions of the FDCPA.

Can you provide more details about the loan, your previous relationship with this person, and the the circumstances surrounding this person asking you for money? This smells of fraud to me, but there's not nearly enough information to make that determination yet.

 

[a thorn]

As you are the entity who originally extended the credit, you cannot violate the FDCPA.

As a debt collector, the debtor's employer is bound by the restrictions of the FDCPA.

Can you provide more details about the loan, your previous relationship with this person, and the the circumstances surrounding this person asking you for money? This smells of fraud to me, but there's not nearly enough information to make that determination yet.

I had no previous relationship with this person. Its a Payday-loan in the state of Florida. I was talking with another lender and he was telling me his store no longer lends or lends very little to collection employees because of their higher rate of default.

 

[single317dad]

I had no previous relationship with this person. Its a Payday-loan in the state of Florida. I was talking with another lender and he was telling me his store no longer lends or lends very little to collection employees because of their higher rate of default.

That clears things up quite a bit. I was under the impression you were in some non-financial business and were approached by this person to make a loan you would not normally make. That doesn't seem to be the case here.

It makes sense that CA agents would have a higher default rate; imagine that your job was to spend all day trying to collect money from people who don't pay, and that you were largely unsuccessful in your efforts.

The difference is that most of those people he's collecting from don't have a job or means to pay. This person is employed. You can sue them yourself if you're not comfortable turning his case over to your regular CA.

Unless you signed some contract that states differently, in Florida you're allowed to collect up to the 10% fee, $5 cost, and any bad check fees you incurred. You can't turn this into a criminal matter, but you can recover court costs if the court approves it. You can collect interest on a judgment for a payday loan.

Here's a good overview of the restrictions on Florida payday lenders:

http://www.nolo.com/legal-encyclopedia/florida-restrictions-payday-loan-lenders.html

http://www.nolo.com/legal-encyclopedia/florida-restrictions-payday-loan-lenders.html

 

[a thorn]

Thanks everyone! I think Ill take that route. It may take some work but I believe my collection rate may be better.