Legal Question in Credit and Debt Law in California
past due accounts
we currently have several clients that are past due on their accounts. are we allowed to print past due on the outside of the envelopes we send their statements in
1 Answer from Attorneys
Re: past due accounts
Not a recommended course of action.
If these are consumer debts or otherwise subject to FDCPA or Rosenthal Act, such conduct would violate both and subject you to a host of statutory damages, among other things.
If these are non-consumer debts, the conduct could still violate a host of statutes, including potentially Bus & Prof Code 17200 et seq.
Finally, what's the point of doing the conduct? If these are good clients, pick up the phone and call. If they are no longer clients, then they clearly are not going to pay voluntarily (assuming that they have already been asked).
Define a reasonable in-house collection strategy and then if not successful, send them out to a collection agency or collection attorney for litigation.
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