The Business Debt Collection laws protects the business from unfair debt recovery. It protects the collection agents during the recovery process. These laws also regulate and control the Debt Collection Agencies or the DCAs. It is handled throughout the debt collection process. A business debt is also known as corporate or commercial debts.
Business or Commercial debt collection laws is applicable as the same to all types of business money or debt recovery. It says that it is mandatory for a business or corporate lender to acquire the lent money back from the person on time or before the specified deadline offered. If the person is unable to return back the promised money he become a debtor and the lender has all the rights to pursue payment from the debt.
Business Debt Regulations
Both the debtor and the lender has defined rights according to this Business debt collection law. It also do have some forbidden activities or laws that has to be followed by both the debtor and the lender or creditor. The creditor or the business debt collecting agency has the following right when they collect the debt.
- When the payment due date has crossed the DCA or the lender can take legal action in collecting money. After addressing to the debtor by a letter, the creditor can hand over the collection task to the DCA. The creditor does not have the rights to charge the debtor for collecting the debt money using a DCA service.
- Only valid and verified information must be included in the reminders or letters sent to the debtors by the DCA and the creditor. If false information is shared, then it is considered a breach to the law.
- A debt collection agency or the creditor has no rights to threaten the debtor using illegal actions like taking possession of the debtors belongings or property, etc.
- The creditor and the DCA has all the rights to take the debtors case to the court or law. But they creditor or the DCA cannot demand an arrest of the debtor.
National and International Business debt Regulation Law
Depending on the location of the lender and the debtor, the debt collection is planned accordingly. If they live within the same nation , then the DCA and the creditor must abide by the national or state laws. If they live in international different locations, then the international business debt regulation law has to be followed by both DCA and the creditor.