Business debts are not covered under the FDCPA

The Fair Debt Collection Practices Act (FDCPA) has guidelines enforced by the Federal Trade Commission (FTC) to regulate and ensure fair debt collections. This act came into existence to address consumer complaints of overly aggressive and abusive behavior by debt collectors. Any personal or household debt that is not related to a personal or family owned business is covered under this act. This includes money owed for personal loans, auto loans, mortgages, credit cards and medical bills. Unfortunately,the FDCPA guidelines do not apply to your business debts. Understanding the FDCPA guidelines can shield you from many troubles and strengthen you with the information to report violations of the act.

Third party debt collection agencies and debt collectors employed by these agencies are guided by the FDCPA guidelines. There are some debt collectors, whose activities are not restricted by the FDCPA guidelines. The parties who are excluded from the Act are:

* In-house collection agents i.e. the creditors who collect their own debts
* Banks that collect their own debts
* Certain credit card companies

In all this a debt incurred for a business purpose and the debtor who incurred the debt for business purpose are not protected by the FDCPA.

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