IS there really any difference in consumer VS commercial debt?? When the Collection Agency reports the debt to the CRAs then do they not call under the fed quidelines no matter if it is a commercial or consumer debt? Any comments appreciated. SKI
I would presume that the rules the CRAs have to operate under would be the same since any items reported would be affecting decisions on consumer credit. If this were a big FCRA loophole, the CAs and JDBs would have already found it and expoited it. More likely, the difference may come up in whether a debtor has the protections available under FDCPA, when the collection activity is for business debt.
Since my post have asked 3 attorneys this question.. They all said my situation is clearly commercial debt BTU here is the BIG BUT The CA will try to collect it as consumer since they will then use reporting to the CRAs on MY consumer report So it really not an issue. SKI
Again, you really need to read the FDCPA. Whether you have personal liability for a commercial debt (when they can report it on your consumer report) doesn't matter. Liability doesn't = consumer debt. For the FDCPA to apply to collection attempts, the debt has to meet this standard (quoted from the FDCPA). (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.
