Legal Question in Business Law in Ohio

small business

We have recently been turned into collections (on my first notice) by a telephone company that can not tell me what the small amount is for. After speaking to them 3 times (called several but they only returned my call 1 time) they decided to label it ''advertising'' which i know is a lie because our advertising is paid monthly at the exact amount each month. The lady from the phone company says she can't tell me what the bill is for nor can she tell me when it started showing up on my account because their records only go back to 1999 so she says it must be before then. I know I do not owe this but I can not prove it because they can not tell me what it is for. Can you please tell me what my right is and how long they can come back on you for something like this? I know it is a small amount but it is the principal at this point. I do not want it to affect my credit so how do I keep it off my credt?


Asked on 7/23/07, 9:14 am

2 Answers from Attorneys
Bradley Miller Miller Law LLC

Re: small business

Has the collection agency given you written notice, or have all communications been over the telephone? A collection agency is required to give written notice of debts that they are attempting to collect from you. The notice must give the amount of the debt and name of the creditor you owe the debt to. This is required under the federal Fair Debt Collection Practices Act (FDCPA).

If you have received the written notice, you have 30 days from that point to dispute the debt in writing and require the collection agency to verify the debt against you. From the time they receive your dispute notice until they have verified the debt, they must cease all collection attempts (that includes harassing phone calls).

A violation of the FDCPA can result in fines being levied against the collection agency. In any case though, you should probably contact an attorney to help you deal with the collection agency. He or she can advise you if the agency may have violated the FDCPA and what recourse you have.

If you have any other questions, feel free to contact me.

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Answered on 7/23/07, 4:47 pm
Bradley Miller Miller Law LLC

Re: small business

I need to amend my previous answer to you slightly.

I answered previously assuming you were personally liable for the debts of the business. The FDCPA only applies to natural persons - so not business entities. However, if you are a DBA (doing business as) or otherwise personally liable for the debts of the company, particularly the phone company bills here, the FDCPA should apply to you. The FDCPA is a consumer protection act, so it only applies to individuals.

If your business is a corporation, LLC, or other limited liability entity where you are not personally liable for its debts, you cannot use the protections of the FDCPA.

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Answered on 7/23/07, 4:56 pm


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