American Express Does not Settle Business Accounts?

[mcck]

Received a letter from a CA asking me to pay $$ on a defaulted AE business account. I called to settle and they told me AE does not settle. Called AE and they told me I should speak with the CA where my account has been transferred. The amount is $470 but I wanted to settle.

Any thoughts?

[qtptute]

Busines accounts are not covered under FDCPA and the CA knows that. they don't have to settle anything. Deal only with Amex not the CA.

[elyse449]

But if they're coming after someone on a personal level, not the "business" doesn't that change things a bit? I thought I heard in SOME cases the FDCPA does apply...but I forgot which ones. Oh yeah, if the business is an LLC...something in HOW the business is classified.

Mcck-were you the sole proprietor?

Elyse

[qtptute]

But if they're coming after someone on a personal level, not the "business" doesn't that change things a bit? I thought I heard in SOME cases the FDCPA does apply...but I forgot which ones. Oh yeah, if the business is an LLC...something in HOW the business is classified.

Mcck-were you the sole proprietor?

Elyse

Nope, they will say it is a BUSINESS CARD, therefore FDCPA does not apply. We've actually had a case (client didn't tell us it was a business card and we sued under FDCPA thinking personal use) and we ended up dismissing with prejudice against the CA, because it was a BUSINESS CARD.

[elyse449]

They will say whatever they have to so that they can do what they want.

I still think there is something to HOW the business is declared, sorry. My sister was recently sued (landlord of where she rented space from-they'd trumped up some fees of course) and because they didn't sue "Cyndi's Floral Design" but my sister herself and she was sole proprietor, there WAS something to it as I recall and they were forced into settlement with her.

Guess we can agree to disagree and maybe it's only pertaining to my state. I would FIRMLY urge the original poster to consult with an attorney in his/her state of residence. Oh well, maybe I'm confusing something here...

*If this is the only debt that came from the business, the OP may just want to pay it and be done with it. I still say to seek out an attorney well versed in business law.

Anyway, here's a good article...

http://www.credit.com/rs/vol1.jsp

and an even better one...

http://www.fair-debt-collection.com/phpMyFAQ/index.php?action=artikel&cat=7&id=6&artlang=en&highlight=business%20debt

Ok, and apparently there is something to WHOSE name appeared on the AMEX card, was it the businesses name or your personal name? Here's a good link from here at the site..

http://www.debt-consolidation-credit-repair-service.com/forums/showthread.php?t=258655&highlight=sole+proprietor

Elyse

[divemedic]

The FDCPA does NOT apply, because business loans are not "debts" as defined by the FDCPA:

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

There may be protections offered by other laws- either federal or state, but the FDCPA does nothing for business debt.

[mcck]

It was a Business Account. Based on the input, I have decided to pay it and move on. However, I am still asking AE and the CA to mark my CRAs as Paid as Agreed or Delete.

Thank you all for your help.