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vonniegirl

Business Accounts

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Hi everyone,

I have a question...is there a special credit reporting agency specifically for business accounts?

There are several collection accounts and late pays but not showing up on personal accounts.

If these accounts are used for the purpose of credit can I negotiate with these companies to settle the debt? Can I still use the sample settlement letter?

Thanks in advance for all your help :wink:

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Most purely business credit is reported through Dunn & Bradstreet. In general, its governed through FDIC and UCC regulations.

On the other hand, if you personally guranteed this debt, it will show up on your personal credit report, but there is some question as to whether the FDPCA applies. There are some court case where the court has ruled that the "least sophisticated user" doctrine doesn't apply to business owners.

If you did not gurantee the debt, and your business is incorporated, then it has a credit life of its own and you can deal with that separately. The best way is to call the OC and see what you can work out. (As usual, if they've turned it over to a CA, don't bother talking with them...they're the same slime balls that we all have to work with.)

And...for a business debt...I'd suggest getting a lawyer involved to make sure all the nuances are handled correctly.

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I agree with Willing on this. And, do remember one very important thing, all a creditor can do is say no. Even though the debt is business related, and the FDCPA does not apply, there is no law written that says you cannot try and resolve the problems in a amicable way for both parties.

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Sorry guys. I've had this discussion with Mr. Edelman in the past. Business debt is not covered under the FDCPA at all, even if personally guaranteed. This is why:

(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.

Obviously, if you buy something for a business it is not covered under this definition. This is also a warning for people using their personal credit to fund business purchases...such transactions will not be protected under the FDCPA there either.

This definition is also why things like parking tickets are not covered under the FDCPA either.

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Methuss You're absolutely right...but...I did have some success scaring away the least sophisticated collectors by claiming that the FDCPA did apply, and asking for validation. Of course, all that did was buy time, because eventually the CC company passed it on to someone who knew better.

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Thanks guys for the replies. This outstanding late accounts has not reported to the credit bureaus yet however, it was told to me that instead of the social security number used it was the tax id number to open the accounts.

Does that sound feasible and if it does since it is not being reported to the credit bureaus and the accounts may be stilol in the original creditors hands what is the net step to settle these outstanding accounts :?::cry::?Thanks in advance for your continued expertise and help :)

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I still say, as I did above, since the FDCPA does not apply, nothing says you can't contact the OC to find an amicable resolution to this. All they can say is no. True, if the debt is sold, you will have to do the same with the current owner, but, again, all they can say is no. And, if it is sold, offer less and hope for somewhere in the middle.

As to the Taxi number, it could still be reported easy enough by your name and address alone, and this number being referenced as the acocunt number. Just check your CR's periodically.

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Thanks retmar, So you're saying there is no difference in business and personal as it relates to credit reporting. I thought that might be the case but wanted to verify it with you guys.

As far as I know the OC is still in possession of the account and I will inform my friend to begin by contacting the OC and making arrangements to repay the balance, try negotiating a settlement amount with an agreement not to send anything negative to the cra.

Does that sound okay :?:

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Go for it. Remember, dealing with the OC does not guarantee they will discount the total, but, if you request they discount only the late charges and fees, some are more receptive of this. Also ask for them to reage the account and delete all lates. This has been done in the past. Just compose your letter to benefit you, not them, yet don't go overboard.

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