Legal Question in Credit and Debt Law in Texas
Business to business Debt
If I tell one of my clients that if we do not receive
payment by a certain date, that I will turn him over to an
outside collection agency or take him to court but I know
that I really want do this, Is it against the law to make a
threat like this? Can I be sued by my client for making
threats and not following through.
2 Answers from Attorneys
Re: Business to business Debt
You can be sued for anything, so long as the complaining party has the filing fee. However, they can't make it stick if the basis of their suit is your threat to take an action that you are legally entitled to do.
As in poker, getting a reputation for bluffing is not good for business.
Re: Business to business Debt
It seems unlikely that someone will actually sue you for not suing them, however, you still may not wish to "threaten" to do anything you're not prepared to do. You may use language such as, "We reserve the right to use all legal means available for collecting all amounts due."