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Collection Agency is calling every day


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Collection Agency is calling my friend every day.

Here is information:

- KN owns his own business (construction; C corporation)

- KN was general contractor in one house

- owner of that house wanted to do some Fire Alarm Work

- Fire Alarm company has faxed quote and owner agreed to pay

- KN did NOT sign any contract with Fire Alarm company

- owner wasn't happy with work, felt that much less was done and low quality; underpaid

- collection agency calls KN, since he was general contractor in that project - again NOTHING has been signed by KN

Question #1: What to say to that collector so he stopped calling? He didn't even send official letter. KN explained to contact owner directly, but CA still calls.

Question #2: Should KN send Debt Validation Letter to CA? Collection is not showing up in his credit report.. So is it worth doing it?


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Since this is a "business" contract / debt very little of what we discuss here has any bearing on the situation...

But, if your friend did not sign anything, he has no responsibility for this debt. Did the home owner sign? If it were me (and my business, which is now defunct) I'd tell the CA to stop calling and contact the homeowner directly or my lawyer will be calling him...

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The problem here is if this is business debt or not. If he has no contract with the alarm company and the homeowner paid the alarm company directly, this is a consumer debt between the homeowner and the alarm company. Done-deal.

Now if he had ANY implied agreement with the fire alarm installer, this may be business debt and the FDCPA does not apply at all.

I would tend to believe that the contract is between the homeowner and the alarm company if the payment came directly from the homeowner, but if your friend was paid by the homeowner and then he paid the alarm company, he's pretty much screwed. That payment would be prima fascie true that he had an agreement between his company and the alarm company.

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