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Palisades Collection, L.L.C. trying to collect from Business


dumdum
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Here's the story...

My company, a California Corporation, had an account with a cellular carrier that was closed and remains unpaid for about $700 since about Jan of 2004.

My company received a letter (with my name under the company name, as I was the user of the account) from Palisades and they have stated in the notice the original creditor, account number and current balance, which all appears to be correct.

Keep in mind that the account was opened in the company name and I used the company tax id #, the only personal information connected to it is my name. With that said, I, as an individual, know that I am not responsible for this debt.

My question is this:

Can the same methods be used to DV when it's a corporation that owes the debt? It's not showing on my personal credit report and I don't expect it to. I don't know where and how corporation reports are kept, or by whom.

The collection letter also says:

"Please be advised that your account has been sold to Palisades Collection, L.L.C. You are directed to address all future correspondence and payments concerning this account to this address:"

And they go on with the address and the usual "this is an attempt to colelct a debt..."

I'm a little unclear as to whether Palisades is the collection agent for this debt and is working for the original creditor.... or, if Palisades actually 'owns' the account now. It's a little confusing by looking at the letter.

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Normally, the processes described on the website don't apply to business debt. However, you should send a personal (not corporate) letter immediately to Palisades. Tell them to cease and desist trying to personally collect from you since the corporation is responsible for the debt. If they ever contact you again or mess with your credit, indicate that you will pursue legal action.

Now, here's why:

What they are trying to do is "pierce the corporate veil." There are several ways to accomplish this. One of the ways is when the IRS or state tax agency goes after the corporate officers for outstanding taxes. Another way is when a corporate officer signs a personal guaranty in exchange for the corporation receiving a credit account.

Did you sign a personal guaranty? I would say no based on your statement that your name is the only personal information attached to this account. In that case, the CORPORATION (which is an entirely separate entity unto itself) owes the money, not YOU.

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Can the same methods be used to DV when it's a corporation that owes the debt? It's not showing on my personal credit report and I don't expect it to. I don't know where and how corporation reports are kept, or by whom.

Vrandon is right, FDCPA does not cover biz debt but CB has a section covering business debt, you could try to check it out and see if you can find your answers there, or post your questions http://creditboards.com/forums/index.php?showforum=27

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