Author Topic: Need some advice on collection but I think it's for Business.  (Read 2964 times)

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help4me

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First off I'm new to the forum and if this is in the wrong section Mod's please move.

  I am looking for some advice on a collection. I have searched several forums and Goggle and can't seem to find an answer.

 I have received several letters from Pushpin Holdings LLC, regarding an alleged account with Lease Finance Group ref: an alleged Equipment Lease on a Credit Card Terminal. It also states that I had a Personal Guaranty on said Lease.

 I have read that the FCRA and FDCPA is for personal debt.
 Is there any laws for small business?
Where do I need to look?
What about an SOL?
 I did have a business that I closed in 2006 I did have a Credit Card Terminal that I believe was from  my bank at the time, I am in the process of looking through storage to find any information I can.

Their last letter was on 5/31/11 and they state, " Due to your continued delinquency and failure to pay the outstanding balance listed above, your account has been referred to my department to Initiate a Civil Action Against you as allowed under your personal guaranty in your lease agreement. Accordingly, demand is hereby made for payment in full."

I did send a DV letter for their first 2 letters on 2/2/11 and 4/15/11.
Any advice on where to look for the laws for this please let me know.

Thank you for your time in reading this and any responses.

help4me

I am in Georgia if that makes a difference.

CleaningUp

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Re: Need some advice on collection but I think it's for Business.
« Reply #1 on: June 12, 2011 09:48:53 PM »
Business matters are conducted under the Universal Commercial Code.  Every state has implemented such legislation.

Your credit card terminal purchase is generally arranged through the bank or settlement entity, but the terminal is generally financed.  Lease Finance Group has a huge presence in that market.  And, you likely signed a personal guarantee when you signed the papers to get the terminal; you lease payments were made as part of your monthly servicing fee.

LFG is an aggressive, and somewhat slimy collector.

I have a terminal financed through them that I bought-out at the end of the lease.  They continued to try to charge me the lease and late fees for the next year. I finally made them go away without involving attorneys, but it took a fair amount of effort.

SOL in GA for written contracts is 6 years.

You can try the DV route, but I would not count on it getting much traction.


Two questions:
 
   1.  Did you return the terminal; and

   2.  How long did you make payments? (Most terminal contracts are for 3 years.)


help4me

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Re: Need some advice on collection but I think it's for Business.
« Reply #2 on: June 12, 2011 11:34:32 PM »
Thank you for your reply and insight.

 As far as I can remember The terminal was returned. I am in the process of finding my records and such from storage. My credit report says it was a 48 month lease, which I do not recall having signed.

 Georgia Commercial Code - Title 11, Section 11-2A-506
     
 Statute of limitations
(1) An action for default under a lease contract, including breach of warranty or indemnity, must be commenced within 4 years after the cause of action accrued.

 So do I follow the SOL of 6 years or the  GCC?

Another question Do I go by Ga. SOL which is where I live now, Fl SOL where the business was, Or from what I have read NY, which I might as well take a default as I can in no way afford to get to NY.
I think I am going to have to find a lawyer.

Shadowbuddha

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Re: Need some advice on collection but I think it's for Business.
« Reply #3 on: June 13, 2011 02:29:54 AM »
The SoL will depend on what state you're sued in, if there is a choice of law provision in the contract, and how that state deals with choice of law provisions.  Some states use their own SoL, some borrow.
"I was THIS CLOSE to being complete!" - Fight Club

I am not your attorney.  Nothing I say should be construed as legal advice nor does it create an attorney client relationship.

help4me

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Re: Need some advice on collection but I think it's for Business.
« Reply #4 on: June 16, 2011 01:08:54 AM »
 Can anyone tell me or show me where to look, if this is still a business matter, or since they say I signed a personal guarantee if it is now a personal debt?

 If it makes any difference, It was an S-Corp and I was the owner.

 Thanks again.
 

CleaningUp

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Re: Need some advice on collection but I think it's for Business.
« Reply #5 on: June 16, 2011 01:11:10 AM »

A personal guarantee does not change a business debt into a personal debt.  Sorry.

FDCPA does not apply to business debts; check with your state's version of the UCC, they may provide avenues for relief.


help4me

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Re: Need some advice on collection but I think it's for Business.
« Reply #6 on: June 16, 2011 12:06:44 PM »
Thank you, that is what I thought, I just could not find it anywhere.

rzinky

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Re: Need some advice on collection but I think it's for Business.
« Reply #7 on: June 30, 2011 05:46:21 PM »
I don't mean to high jack a thread, but I have a small question.

If it is business (inc or LLc) and you are being sued personally can you defend yourself pro se

kevinmanheim

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Re: Need some advice on collection but I think it's for Business.
« Reply #8 on: June 30, 2011 05:49:29 PM »
I don't mean to high jack a thread, but I have a small question.

If it is business (inc or LLc) and you are being sued personally can you defend yourself pro se
Sure, but depending on your state law, you may not be able to defend the company. You would only be there to protect your own rights.