I was the owner of a small business around this time in 2002-2004. I had a Nextel account which was setup using my Tax ID and Business name. There were couple of employees who ran up an outrageous phone bill and I lost my service with Nextel, due to not being able to pay the outstanding balance ($1,600.00 roughly). I am receiving calls from a collection agency threatening to report this debt to my personal credit history file. Is this possible? Are they able to report business charged off debt to my personal credit file? I have checked my file and I don't even see the initial charge off on it, so I don't think there would be any ties, but maybe someone out there knows. There are possible FDCPA violations with our coversations with the collection agency, but that is another story... Please reply with your thoughts.
Was the account opened in the name of the business, which was incorporated, or were you a sole proprietor, and therefore pesonally responsible for the debts of the business? Or did you otherwise personally guarantee the account?
Thanks for the reply. All I know is it was opened under the business name and had me as a contact. Not sure about the personal guarantee or sole proprietor. Didn't know if it was setup this way or not. But shouldn't the charge-off show on my credit report if this is the case?
I can tell you my banking accounts were setup as a sole proprietor, but I don't remember mentioning this with Nextel. Hope this helps.
Incorporated, you would have filed legal papers with the state, paid a fee every year, had at least annual meetings of a board of directors, and filed corporate taxes, both state and federal. Your bank accounts would have been in the name of the corporation. If you didn't incorporate, you would by default be a sole proprietor, and therefore legally personally responsible as the owner of the business for any debts the business did not pay.
Possibly because if the account is under your business name, and a TIN, they don't know for sure you are responsible, but will try to collect based only on your name as contact. They may not at this point have taken the trouble to research your business license, or form of ownership, etc, and if you pay based on their letter, why should they? If you had incorporated, or even have been just an employee, you would not be personally responsible, but you might still receive such a letter. If you had just been the secretary, if you didn't dispute the debt, they would continue to dun you. It's the alleged debtor's job to raise any defense. Collecting isn't about truth, but about dunning people who might pay you based on some claim. If they pay, you accept it with a clear conscience. In this case, as a sole proprietor, you may actually owe it, if it is correct.
Thank you OnTrack. I understand that I possibly owe this debt. My wife was contacted by this collection agency advising her that there will be a lawsuit to collect this money. They pulled a copy of my credit report and obtained my driver's license information. I have inquiries on my credit report from this collection agency. That sux! Anyway, this morning my mother received a nasty call from this same guy asking how to get in touch with me. I know they all do this, but the conversation turned heated and he began accusing her of lying, hiding me, etc. She was very upset to say the least. I am thinking of writing a cease and desist letter to advise them I am not the one responsible for the debt and if they wish to contact me further, they can do this by mail. Can cease and desist letters be used for business debt as well as personal? Or does this debt now fall under personal? Would FDCPA be an effect for this case as well? Thanks again OnTrack, you are very helpful. Some online forums have a tip jar for some of the members to thank others for their information, can I leave you a tip somewhere?
If your wife was already contacted, then there was no reason to contact your mother, let alone berate her, whether your debt is a business debt or not. Presumably if they have pulled your reports, they know your address and can send you a letter. Have you received a letter? Regardless of whether the debt is a business debt, did it contain the usual FDCPA notifications?
Regarding tips, give it forward. Use your experience to inform others who have problems about what their rights are, how to know when they are being conned, and how to take control of their financial problems and handle them in an assertive manner.
I have received no letter to date. The only time we have heard from them was by phone. What is the standard FDCPA language I need to look for? Do I have a leg to stand on if this is FDCPA related? They call harassing my mother and have called threatening a lawsuit, etc. This is violating the "spirit" of FDCPA, or at least walking a very fine line. Would you recommend writing a Cease and Desist letter in order to stop the phone communication?
