As a business owner, collecting debt from a customer can be challenging. And while it may be tempting to engage in self-help remedies or other tactics to recover debt, keep in mind that some methods are strictly prohibited. Here are a few examples of debt collection practices that are prohibited:
Harassment. Debt collectors may not harass, oppress, or abuse a debtor or any third parties they contact. For example, debt collectors may not do the following: use threats of violence or harm, publish a list of consumers who refuse to pay their debts, use obscene or profane language, or repeatedly use the telephone to annoy someone.
False statements. Debt collectors may not use any false or misleading statements when collecting a debt. For example, debt collectors may not falsely imply that they are attorneys or government representatives.
Debt collectors may also not state that the debtor will be arrested if the debt is not paid, or that they will seize, garnish, attach, or sell the debtor’s property or wages.
Unfair practices. Debt collectors may not engage in unfair practices when they try to collect a debt. For example, collectors may not collect any amount greater than the debt, unless state law permits such a charge; deposit a post-dated check prematurely; use deception to make the debtor accept collect calls or pay for telegrams; take or threaten to take the debtor’s property unless this can be done legally; or contact the debtor by postcard.
Contact experienced Houston business attorney Andrew Weisblatt
Collecting unpaid debts are essential to the success of any business. Texas attorney Andrew Weisblatt is a skilled Houston B2B business collections attorney who understands how to effectively collect from businesses that may be reluctant or unable to pay their outstanding financial obligations. To schedule an appointment with Mr. Weisblatt, call our Houston office today at 713-666-1981.