The home based business market, sometimes called the SOHO (small-office/home-office) market, is booming. As more and more B2B companies expand into these markets, they may see themselves walking a fine line between B2B and B2C.
Exactly why is this significant from a legal point of view? National debt collections laws tend to treat consumer and business debt collection–even small business debt collections–rather otherwise. In case you aren’t a Debt Collection Agency, why should you even care about the problems of small business debt collection law? Straightforward: the line between groups and bill is at least as narrow as the line between home based self employed private consumers and entrepreneurs.
Home Based Business Debt Collection Laws
Basically, there are considerably stricter protocols than there are under business debt collection law for managing consumer debt collection. National consumer collection law is best encapsulated in the Fair Debt Collection Practices Act. The nature of the law is to prevent harassment. But in practice, conformity isn’t quite so straightforward. The law has a long record of stuff you cannot do, including revealing the debt to a third party without meaning to, or threatening legal action. How can the FDCPA get you into trouble with home based business owners?
Possibilities in Home Business Debt Collection for Ambiguity
Fran’s company sells paper stock to use in making business postings and business cards. Companies are just marketed to by her company. Dave, a home based business owner who purchased some paper stock, has neglected to pay for his latest order. Fran phones the number Dave has on file, which will be home file. The daughter of Dave answers the phone, and Fran makes the outstanding invoice to be paid by a reminder for Dave. Did regulations simply break?