Business Collection Matters in California
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
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.