txsanchez

For anyone looking to buy an existing salon...search for and read all my posts for what NOT to do!
So here is yet another post with issues.
The previous owners owed over $2K in electric bills before I bought the salon. My sales contract with them stated all liens, utilities, taxes and payroll would be paid up to the date of sale. Thank goodness I switched to a new provider on my own account. So now I have a commercial debt collector calling me stating I owe the old debt because I bought the business. I am pretty familiar with the Fair Debt Collection Act and sent a dispute letter. The collectors is now saying that commercial debts fall outside the FDCA. He is harassing my employees calling and asking about our business, equipment, etc. I know he is looking for how much the company is worth. I have instructed the girls to refuse his calls.
Does anyone have any experience in dealing with commercial debtors? I have an attorney but I hate to use him if I can send a cease and desist.

caribbean tan man

inform them you did a asset purchase only and just used the same name and number because it was established. chances are they are just far fetching...ive been there

i ran into a similiar problem when i purchased my salon 6 yrs ago. They had unpaid city taxes, that stopped me from getting a license. so i paid it minimal at $500 but still BS.

Then 6 months later i find out the day after i put a deposit the owners put the equipment up for collateral for a loan and never made 1 payment!!!

all of a sudden the laon company is calling me stating they are coming to repo equipment..plus every bill collector in town wants money for something.

that is when i was advised to incorporat the biz. that alone makes it a whole diferent ball game. when they called back i told them i did a asset purchase and the equipment that was supposedly used for collateral is long gone. i did not buy caribbean tan, i purchased the assets and opened up caribbean tans "LLC". totally different biz now. they never called back

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someone PM me when a good tanning topic is posted. :lol:

unity

^^^ what he said. I did an asset purchase also.

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OMG! I made a post! :)

mr belvedere

General note - if you ever buy a small business, whether it be a tanning salon, a coffee shop, or an American-made car dealership and you think it's a good deal for "you", then think again.

BTW, the Search option here on tantalk.com is not only an oft overlooked tool, but can also be a "valuable" tool that can not only save your life, but save you some moolah too. Try it some time!

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"A dusty bible leads to a dirty life ..." -Synonymous

DB Hottie

I took a Dave Ramsey course last year, it was very useful. There is a sample Cease and Desist letter in it. Goes like this:

Date

From

Via: Certified Mail, Return Receipt Requested
To:

RE:

Dear ____________,

You are hereby notified under provisions of Public Law 95-109, Section 805-C, the FAIR DEBT COLLECTION PRACTICES ACT to CEASE AND DESIST in any and all attempts to collect the above debt.

Your failure to do so WILL result in charges against you with the state and federal regulatory agencies empowered with enforcement.

Please be further warned that if any derogatory information is placed on any credit reports after the receipt of this notice, that too will result in action being taken against you.

PLEASE GIVE THIS MATTER YOUR IMMEDIATE ATTENTION.

Sincerely,

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Signature

My notes say: Do not use a cease-and-desist letter except in horrible situations, because all negotiations stop and any hope of positive resolution is lost.

Hope this helps.

aimeekat

Is that true or does he just say that because he thinks you don't know the law? First I've heard of that, but I could be wrong.

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I'm a nice girl. I swear occifer.

CrystalSS

I had same situation. I told them to show me where I signed and I will pay it. They never called me again. Good luck with that one.