I have been working on my credit for the last couple of years and was getting in great shape until over the last six months my husband and I experienced a terrible run of bad luck. If it could go wrong it did. It has basically put us back where we started. At least now I know I can fix it, again, it will just take time. Anyway, my question is has anyone ever dealt with LTD Financial? I had a credit card under my business, it used the business tax id and I am not the personal guarantor, but I am getting calls and threats from them saying that they are going to do an asset search on me. They are also saying that because I used I business tax id, the FDCPA doesn't apply but again if that's the case that would mean I am not the presonal guarantor right? They have threatened to call neighbors, vendors (not sure how they would do that) etc. Now logic tells me that since I am not the personal guarantor, they can not do this, but the threats still scare the hell out of me. The business is a corporation and I plan paying the debt but obviously with my current situation I need to work out a payment plan, something that LTD from what I have read is not interested in. Just wondering if anyone knows anything about them.
When you filled in the app. did it ask for your EIN or your SSN? Did you use your EIN in place of your SSN? Do you still have the app? If so, rad to ensure that you did not give a PG. Is LTD calling or is it a CA?
You could still possibly be a personal guarantor, and the FDCPA not apply. The FDCPA pertains to consumer debts.
Only a tax id number was used, not my social security number, the company is an LLC. Like I said, I know logically that for the most part they are strong arming me, but damn they can get you going with the threats.
This company was also just fined for illegal practices http://debtrights.blogspot.com/2007/11/nationwide-debt-collector-fined-13.html
Excuse my jumping in late here, but a couple of questions: 1) What is your legal position with the company? Are you listed as President, VP, or as an official officer of the corp.? 2) Have you read the business CC terms and conditions, and determined that you are in no way personally liable for the debts? 3) Have you reviewed your state of incorporation laws to understand how debts and claims apply in your situation? The purpose of an LLC is specifically for these situations, to relieve you as a person from liability from debts incurred by the business. Short of negligence, you cannot be held responsible for the debt, unless it is proven that the debt incurred was for your own personal benefit. The agency is correct in stating that the FDCPA does not apply, but they must contact the business at its official address, not at your home (unless they are one and the same). You "may" have a legal defense if the collection agency is "acting as if" this were a personal debt. A note of caution here, usually business debts are quicker to go to suit than personal debts. Your business may be looking at a suit for this debt rather soon. I am sure they will file an entry with D&B, if they have not already. On the positive side, you may have more leverage trying to deal with the original CC company, if you have not tried already. As for the CA, you do have the leverage that you could BK the business, and start it up again as a new LLC (depending upon the nature of the business). I'm certain the CA knows this, hence the intense pressure. I'm assuming that this is a "smaller business", and I recommend that you contact your local SCORE chapter for business advisement. The counseling is free, and the quality of the advice is extremely high and professional. This situation hints that there are other issues happening within the business, and some professional advice may be valuable right now.
This is not entirely correct. If a PG was given, then no form of business structure will absolve someone of personal liability for a debt.
Yes, if a PG was given, then there is liability directly to the person, which is why I asked if the T&Cs had been reviewed fully. My reference was to the business structure and traditional avenues of liability. The fact that the OP did not have to provide an SS# makes me think that this was a "true" corporate credit card. The other question would be; does this CC show on the OP's credit report? If so, then it would appear that a PG was given, or implied in the T&Cs.
Agree with you here. But it leaves the question, was the OP business structure in good standing with the the OP's state. If not, then there were would a personal liability. As long as the OP's business is in good standing and if it is a multi-member LLC and it is a going and viable concern, there are several strategies the OP could use to protect his/her interest in the LLC should their be a lawsuit and a charging order entered against the LLC.
However, since the CA in this scenario stated "...used a tax ID..and the FDCPA does not apply..." defines this as a business debt, not a personal one. The CA may say they are pursuing collection with the registered officer of the corp., but, as we all know, the CA is relying upon the person not knowing their legal rights and proper processes. I think the main point here is that the protection of the LLC is in place, and that the poster's personal assets are protected. However, the tradeoff is the effect on the business. The main defense the business has is to file a BK, and disolve, which is often the absolute last thing a business owner wants to do. In an emotional sense, this is often more painful than having the personal assets protected. I perceive that the issue here is actually more of an emotional one than financial and/or tactical.
