Business collection matters can be frustrating and expensive for both those collecting and for the business being pursued. Business debt is distinct in a number of ways from personal debt. Most importantly, business debt is typically not included in the strict debt collection laws that apply to individuals such as the Fair Debt Collection Practices Act (FDCPA) or the Fair Credit Reporting Act (FCRA). These are important consumer protections, but business debt typically does not qualify.
The thinking behind this exclusion is that business people are more sophisticated than a typical consumer and don’t need the federal protection of these laws. Despite the exclusion, there may still be very good defenses available to a business in a business collection matter. If your business is facing a business collection matter, our skilled litigation attorneys can advise you and guide you through the process toward a favorable settlement or other resolution.
What is Business Collection Defense?
Whether your business has been the target of a business collection lawsuit, or is receiving demand letters and threats, it is important to protect your rights and raise all possible defenses early. There are many defenses businesses can typically raise in a collection matter. In one common scenario, a business may choose to not pay a vendor because the product or service was not provided according to the terms of the contract or was of inferior quality. Other times, a plaintiff will wait too long to bring the claim or fail to preserve evidence to prove the terms of the contract between the parties.
Uncovering these issues can often lead to a favorable settlement for the defendant. Even when liability is clear, plaintiffs will often negotiate business debts to reach a quick resolution instead of litigating the matter. The business collection defense attorneys at McFarlin LLP are skilled litigators and negotiators and will work tirelessly to find your business the most favorable solution.
Business Debt Negotiation and Settlement
In nearly every business collection matter, both parties will be open to negotiation rather than litigate the matter to trial. Additionally, the Court itself will put tremendous pressure on both parties to settle the matter through mediation or informal settlement discussions. Courts typically require the parties to attend a Mandatory Settlement Conference before a judge or court mediator with the objective of negotiation and settlement. There are a many very effective and persuasive mediators in Southern California who can, in most cases, bring the parties to a mutually agreeable resolution. In most instances, a business collection matter settlement can include payments over time rather than a large lump sum at once.
Call a Business Collection Defense Attorney Today
The skilled and knowledgeable Orange County business litigation attorneys at McFarlin LLP primarily represent debtors or business owners who are the subject of a collection matter. We always work within your budget to resolve the matter as quickly and efficiently as possible so your business does not experience a cash flow or other disruption. Call us today at (888) 728-0044 for a free case evaluation and analysis, we resolve collection matters.