5 Things to Verify When Noble Collect Contacts Your Business

When Noble Collect contacts your business, the first rule is simple: pay nothing until you have checked. Collection agencies may be honest, but they aren’t always accurate in collecting their debts, which may be due to honest errors or something more questionable. This applies to both large, well-established companies and small operators of limited means. It’s perfectly legal to collect a business debt. Just make sure it’s your debt. Verify five things: who is calling, which rules apply, the amount you owe and that you owe the debt, that the statute of limitations hasn’t expired, and how they want to be paid.

1. Confirm who is calling

That agency may be entirely legitimate. Conversely, it may be a fraud. When a debt collector calls, ask for their name, company name, street address, phone number, and state license number. Actual collectors will provide you with these details. A fraudulent company will stonewall you. Ask if they’re licensed in your state, and find out if that’s even a requirement. Not all states demand it, but you can check if your state is one of those that does. Research the company to see if they’re actually who they say they are. Put their physical address and phone number into an internet search engine, and review any comments about them that come up on your search. Consult the consumer complaint database at the Consumer Financial Protection Bureau. Complaints may be natural to some extent, but uncorrected issues should alarm you.

2. Know which rules apply

This one is important. Two sets of rules govern debt collectors. The federal Fair Debt Collection Practices Act (FDCPA) applies if you are an individual in a private capacity. This federal law doesn’t apply to businesses. It does not generally govern the initial creditor. However, many states have their own laws covering this subject. It’s worth finding out whether your state does. Some states have tougher restrictions that cover original creditors.

3. Get the debt in writing

The person on the other end of the phone says you owe the debt. Ask them to send proof in writing. Reputable companies will do this for you without a problem. By requesting these documents, you’re making sure that they actually have the paperwork in place before asking you for payment. If they don’t, they probably aren’t on solid ground.

If you are an individual and subject to the federal FDCPA, you’re entitled to a written notice within 5 days of the first communication with you, listing the debt amount and the name of the creditor. If you contest the debt in writing within 30 days, they must provide evidence of the debt before collecting further. Even if you aren’t a private individual subject to the federal FDCPA, it’s still a good idea to ask for a similar letter anyway. Take note of your correspondence with them. Record all phone calls with the date, time, the name of the person you talk to, and what was said.

Don’t assume that the collector is correct simply because they called you. Debt collectors may operate in error, or the debt may even belong to another company. Look at your books, and check for any recent payments you have made. If there’s a difference between your numbers and theirs, check it out. Double-check to make sure that all invoices are accounted for and paid.

4. Check how old the debt is

Check your books and see when the debt in question was created. The right to collect a debt doesn’t last forever. A lawsuit on a contract for the sale of goods under the UCC must be filed no later than 4 years after the claim accrues. If you make a payment, you may unintentionally acknowledge a valid debt and start the statute of limitations again. Don’t commit money you don’t owe. A common misconception about the statute of limitations is that it’s a rule that courts must enforce automatically, regardless of what you do or don’t do. The fact is, it’s more of a self-help tool that you have to use on your own behalf. A court may rule against you if you don’t appear and raise it as a defense.

5. Watch how they want to be paid

Wire transfers, prepaid debit or credit cards, gift cards, and other untraceable methods should put you on your guard. Don’t let yourself get rushed. Take your time, find out what you’re up against. Don’t give out your bank account number or credit card number over the phone. Threats to file criminal charges are a red flag of a possible scam. Report it to the FTC at reportfraud.ftc.gov. If anything doesn’t check out, or if a company refuses to provide the information requested, hang up and contact your state Attorney General’s office.

In conclusion, a simple series of steps can help you avoid getting taken advantage of by debt collectors. Not all of them are bad actors. Many are legitimate people doing an important job. It’s possible, though, for a fly-by-night operator or outright crook to slip through, and they’ll pocket your money faster than you can blink. Assert yourself, use the law, and don’t pay until you’re convinced that it’s really your debt.

A free contract review costs nothing and takes a day or two. Call (888) 837-7053, or send the agreements to Delancey Street for a straight read on your options.