In a session at IACC’s 2023 Annual Convention in January, attorney and shareholder Donald A. Mausar, Esq. with Weltman, Weinberg & Reis Co., L.P.A., highlighted how the distinction between commercial debt and consumer debt is slowly eroding.
Many IACC members were concerned last year when both Congress and the Consumer Financial Protection Bureau indicated that they would like to see the scope of the Fair Debt Collection Practices Act expanded to cover commercial debt collection. While the legislation introduced in Congress, the Small Business Fair Debt Collection Protection Act, did not advance, it could still resurface. Additionally, the Consumer Financial Protection Bureau has said that small businesses in collections should be protected under the FDCPA.
“There is legislation potentially brewing trying to make small business debt covered by the Consumer Financial Protection Bureau, and if so, up to what dollar amount?” Mausar said. “There’s this loose discussion it could be up to $2 million. And if that’s the case, it affects every single person [in IACC].”
Read the full article by visiting the IACC website here. If you have additional questions about this topic, feel free to contact Don
at any time.