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JBaxLaw
JBaxLaw, Attorney
Category: Business Law
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Experience:  Experienced in business formation and licensing issues
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I am licensed as a financial company as I was buying debt from

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I am licensed as a financial company as I was buying debt from towing operators. I have been hit by the state becasue of a complaint from a past empoloyee stating I am a collection agency. I am not-nor do I want to be. I am a settlement company, aiding towing operators. 1099 status is what I want. employed for my services. These debts are NOT in DEFAULT when they are assigned to me. According to FDCPA, under definitions 803 Debt collector, it state IT DOES NOT INCLUDE -- F-iii: "concerns a debt which was not in default at the time it was obtained by such person" These debts have never been noified to oweing person. I am the first contact on the task of collecting this debt. Can I be a 1099 and assist in the "settlement" of these debts with the towing companies?
Submitted: 3 years ago.
Category: Business Law
Expert:  JBaxLaw replied 3 years ago.
Hello,

I am an expert at JustAnswer and will be assisting you. Please remember that I receive no credit for assisting you unless you accept my response. You cannot accept when I make an inquiry, rather you can only do so after you have received an answer. I answer questions based on the amount offered and rely on customers to follow through and "accept." Please remember that this is a chat or a dialogue so please reply to me if you have any questions regarding the information I provide.

If facing a complaint under state law, ones concern would be the state law definition and regulation of a collection agency. The definition under federal law would have no bearing on the issue in such circumstances. The definition under the FDCPA is only applicable as to that set of regulations. State's are free to expand regulations to govern even those collecting debts not in default.

In Washington, a collection agency must be licensed. There are exceptions depending on whether the collection activity is carried on in the business's name which is the original creditor. However, under the state law definition it does not limit regulation to debts in default. See the definitions at:

http://apps.leg.wa.gov/RCW/default.aspx?cite=19.16.100

Thank you
JBaxLaw, Attorney
Category: Business Law
Satisfied Customers: 11311
Experience: Experienced in business formation and licensing issues
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