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The Fair Debt Collection Practices Act (FDCPA) does not cover the collection of commercial business debts!

The FDCPA only offers protection to consumers for private debts. Here is the specific wording from the FDCPA:

” 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.

Some examples of consumer debts are auto loans; medical expenses; charge cards, credit cards, mortgages, personal loans and so forth. Many other laws pertain to commercial and business debts. To attempt to list them all is beyond the scope of this site. However, I suggest you start with the Uniformed Commercial Code and then look for state and federal laws concerning international and interstate commerce.

I’ve often been asked by small business owners who use credit cards to finance their business if their credit card debt is considered business debt or personal debt. The answer depends on the name used on the credit cards and how they are used. Credit cards that are issued in the business name and are used exclusively for business purposes would normally be treated as business debt.

Credit cards issued to an individual who then chooses to use the personal card to finance a business may not be protected under the FDCPA if the charges are primarily for business expenses rather than for personal, family, or household purposes. Use personal credit cards with caution when financing a business.

Finally, always consult an attorney well versed in business and credit law to be sure of your status!

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