Legal Question in Business Law in Massachusetts

Credit Reporting Web-site

I am interested in starting credit reporting website designed for a particular business. It would give this business the opportunity to report a persons name, address and amount of money owed to another co. The web-site would be password protected so that only subscribers would have the authority to use it. I don't know if this is something that is legal or not. Any information you can give me would be great. Thank you


Asked on 5/19/05, 9:30 am

2 Answers from Attorneys
Tom Flynn Law Offices of Thomas V. Flynn

Re: Credit Reporting Web-site

Without more information about how you plan to conduct your business it is difficult to understand what you are attempting to accomplish. However in general, you may wish to review the The Fair Debt Collection Practices Act, which is available online at www.ftc.gov/os/statutes/fdcpa/fdcpact.htm

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Answered on 5/20/05, 5:01 am
Len Foy NH Residential Title & Escrow

Re: Credit Reporting Web-site

Hi -

It seems to me that what you're proposing to do is perfectly legal - I've had some contact with a website providing similar information in the high tech/electronics industry in Massachusetts. On this website, companies are free to report the delinquent payment practices of other companies.

There is a database (for subscribers only) to search the credit of other companies before extending credit terms.

It seems to me that it's perfectly legal, just be careful that you give companies the opportunity to contest or dispute negative credit reporting - it might save you $$$ in lawsuits.

Good Luck with Your New Business!

Regards -

Leonard W. Foy III, ESQ.

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Answered on 6/05/05, 2:57 pm


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