UPDATE Got a collection letter from RMS in Naperville, IL. Added a 10% fee. "This account may be forwarded to the D&B credit database. Is there a board that deals with business. Made a purchase in my own name as a business (not a real registered business; I did it because the rebate stated one item for individuals and more than one for businesses). I never received rebates for a purchase and successfully disputed via credit card (charged back to merchant). The merchant then sent a letter saying this is our third attempt contacting you (false lies: it was the first letter) trying to collect $150 and threatening to report to DB. Is there a similar process of validating for business? Is there a way to get a free DB report. Should I respond and how.
Business debt is not subject to FDCPA so you can forget all those tactics and protections. The fact that your business is not incorporated or an LLC simply means that you are personally liable for all debts of the business. Since a D&B rating for such small businesses is usually useless, I would discount that threat as simply a scare tactic. The creditworthiness of your business is YOUR creditworthiness, not what a D&B report shows. BUT... I would take the position that the rebate was a material inducement to make the purchase and by not paying you the rebate they defaulted on the terms of the transaction.
I do take that position but to whom should I present it e.g. write to merchant itself, make a complaint to FTC... or just ignore it as a lame threat.
The FTC will not help you in this matter. You purchased several quantities of an item with a fake business name just so you could receive a greater rebate. That is fraud. If you did not return the items to the vendor then you still legally owe the vendor monies for the items irrespective of not receiving the rebate. You could be sued by the vendor for payment. If you did not receive the rebates you should have contacted the vendor to ascertain why the rebates were not paid. Failing an acceptable answer you should have filed a complaint with your state AG office then filed suit against the vendor for not honoring the rebate. But wait, you obtained the items without a legitimate business.
How did you pay? If you presented yourself as a business, but paid with a personal credit card, I'm certain that your transactions "flagged" as a personal transaction. SInce you purchased more than one of these products, this was probably contrary to the terms and conditions for a personal purchase. You are liable, since you withheld payment (via CC dispute), but kept merchandise. The "prudent man" approach would infer that you either: 1) Inquire about rebate, and reason for lack of, 2) Return the merchandise since you were not satisfied with the terms of the purchase. So, I would say your best actions would either be pay the bill, or return the merchandise. Also, check your personal credit reports to ensure it has not been reported.
I did inquire about the rebate and got some horseshiet about it being a manufacturer rebate. (this technically does not matter as FTC ruled several times that the retailer is equally responsible. I should be able to keep the merchandise and get the rebate. The rebate made the product free. I did not break the contract. they did.
Who is to say the business did not exist? As a proprietorship no papers need to be filed - and simply the intention of opening a business and spending money exploring the business possibilities is enough under the tax code.
I sense this is a sensitive item for you, but a quick question; how long did you wait for the rebate (before disputing charge w/CC company)? Rebates often take months to receive, when you inquired did they say you would not get the rebate? Did they give you a status at all?
Even though IRC may say it is a business, however state and local laws and ordinances may say different.
If the offer plainly stated a manufacturer rebate then you need to look to the manufacturer. I have clients that sell items with a manufacturer rebate that essentially makes the product free to the buyer. But I would not expect a merchant to absorb the rebate. Read the fine print.
Well... then that leaves the collector with a decision to make - 1. Assert it was not a business transaction and become subject to FDCPA, or 2. Accept it as a business transaction Can't have it both ways, and there are many types of businesses that need no state or local licensing, especially in the pre-operational period.
I don't think that D&B will make that leap. Treat it as a SP (that it is) and put it on his personal CR. I think it would be prudent for the OP to give some serious thought and pay it before that happens. I would not normally go this route but the items were purchased under false pretenses.
Then D & B better notate it as disputed or they will be subject to FDCPA suit for misrepresenting the nature of the debt, and FCRA suit for not providing a dispute notation.The simple act of the chargeback indicates a dispute. Knowledge to the principal is imputed knowledge to the agent, and vice versa. But then again, some would simply throw in the towel faster than others.
I wouldn't necessarily couch it in terms of throwing in the towel rather, just a logical decision. Pay a bill that can and likely will wreak havoc or take the time and energy to file a dubious lawsuit at best. That is a rather easy decision given the facts herein.
This is true, but in a "DBA" situation, liability defaults back to the "entity", in a case such as this it becomes the natural person. The entity has to be able to stand on its own, such as an LLC, Inc. etc.
