debt collections

[Ashabar]

What is the name of your state? TX

I have been contacted by a company I had amerchant account with back in 2003, I closed my account myself in December of that year. They sent me a "final notice" letter around the middle of March saying I owe them a large sum of money. When I called to find out why no one could give me any information but they sure wanted me to make payment arrangements. Since then I have called and sent numerous letters to them as they continue to call and send me threatening letters. I requested some written proof and an explanation of the debt and that has been ignored. The letters they send are very unprofessional looking with no letterhead only an ink stamp with their name and a PO Box address at a Mail Stop store. They ignore all my requests to stop contact until proof is provided. I'm not sure what else to do, they leave me messages telling me to call them and make arrangements "for my own good", and now have threatened to go to another collections agency to continue to harass me. What actions can I take against this company to get my name cleared and this debt erased?

I am at my wits end and becoming very depressed over this issue.

 

[Ladynred]

You say this was for a merchant account - was this a business debt ?
Business debts are treated differently than consumer debts, the FDCPA doesn't apply to business debts. That doesn't mean you have to pay blindly, but you need to approach it differently.

 

[Ashabar]

Thank you for the response! Not sure I guess it would be but they don't address any of their letters to my business it's all focused at me directly, they even send stuff to my house and not the business address and are threatening me personally. I didn't realize there was a difference. It was my first attempt at my own business. What do you suggest?

 

[Ladynred]

The FDCPA defines consumer debt as :

(5) The term "debt" means any obligation or alleged obligation of a consumer to pay money arising out of a transaction in which the money, property, insurance or services which are the subject of the transaction are primarily for personal, family, or household purposes, whether or not such obligation has been reduced to judgment.

So, if the debt was incurred in the course of business or for non-personal, family or household purposes, then the FDCPA doesn't cover you or bind the collectors harrassing you.

They may be harrassing YOU because you personally guaranteed the transaction - so you are liable but the FDCPA isn't going to help.

If this is a lot of money, I suggest you speak to an attorney.