The statute's own definition draws the line - and it is not where most people think
Almost every Eleva business owner has heard of the FDCPA and almost none have read its definition of 'debt'. That definition is the whole boundary, and business-to-business invoices sit outside it.
Two free marketplace paths: one request brings back multiple vetted commercial collection agencies who know they are competing for the placement.
The federal law most Eleva business owners name - the Fair Debt Collection Practices Act - does not reach business-to-business debt at all: its own definition at 15 U.S.C. 1692a(5) limits 'debt' to obligations a consumer incurs for personal, family or household purposes, which is why the state layer decides almost everything for a Eleva creditor.
23 of the 51 US jurisdictions extend their collection statutes to original creditors as well as agencies, which means a Eleva business collecting its own debts can be regulated by state law even though the federal statute does not reach it - whether this state is one of them is in the table below.
The county around Eleva holds 651 business establishments per Census County Business Patterns 2023 - every one of them both issues and receives invoices, which is why commercial collection is a local market as much as a legal one.
That B2B debts sit outside the FDCPA is genuinely useful to know, and genuinely dangerous to overread. Outside does not mean unregulated: state statutes, contract terms, the phone-consent rules and ordinary tort law all still apply to how a Eleva account is worked.
The practical consequence for Eleva businesses is that the protections you may assume exist for your customer do not automatically apply - and neither do some of the constraints. What actually governs the account is the state layer, which differs enormously.
Put a compliance review out to competing quotes before comparing rates
Two free marketplace paths: one request brings back multiple vetted commercial collection agencies who know they are competing for the placement. Competing quotes on the same ledger are the only reliable way to see what your accounts actually price at.
External links go to the marketplaces' own sites and forms. This site may earn a referral fee at no cost to you - it never changes the data above, and no individual agency pays to appear in our research.
The line the statute actually draws
The FDCPA defines a covered debt as an obligation of a consumer to pay money arising out of a transaction whose subject is primarily for personal, family or household purposes. An unpaid invoice between two Eleva businesses does not meet that description, so the statute - and Regulation F, which implements it - does not govern the account. Knowing this is useful in both directions: it explains why a commercial agency can do things a consumer agency cannot, and it explains why the protections you might assume exist for your customer are not automatic.
Consumer debt versus business debt - who governs what
| Consumer debt | Business-to-business debt | |
|---|---|---|
| FDCPA (federal) | Applies to third-party collectors | Does not apply - the statute's definition of 'debt' excludes it |
| Regulation F call caps and validation notices | Applies (it implements the FDCPA) | Does not apply |
| State collection statutes | Apply, and 23 states also reach the original creditor | Apply in 17 states, which extend cover to commercial accounts |
| Licensing in the debtor's state | Commonly required | Commonly required - and often overlooked on multi-state ledgers |
| Phone-consent rules and agency principles | Apply | Apply - this is the real creditor exposure, not the FDCPA |
What governs a business-to-business collection - and what does not
Still applies to B2B accounts
- State collection statutes - 23 states reach original creditors, not just agencies
- Licensing requirements in the debtor's state, where they exist
- Phone-consent rules and common-law agency principles for calls made on your behalf
- Your contract terms: interest, collection costs, venue
- State statutes of limitation on the underlying obligation
Does not reach B2B accounts
- The FDCPA itself - its definition of 'debt' is limited to consumer obligations
- Regulation F's call caps and validation-notice rules, which implement the FDCPA
- Consumer credit-reporting protections tied to consumer debts
- Any assumption that federal law sets a nationwide floor for B2B collection conduct
What this means in Eleva
Assuming the FDCPA governs your B2B account is the most common expensive misunderstanding in this market. It does not - the statute's own definition limits it to consumer debts - so what actually protects and constrains a Eleva account is the state layer plus the contract you signed.
This page is independent research, not legal advice. Collection licensing, statutes of limitation and the reach of state collection statutes vary by state and change - verify current requirements with the relevant state regulator and have significant matters reviewed by your own counsel before acting.
Put a compliance review out to competing quotes before comparing rates
Two free marketplace paths: one request brings back multiple vetted commercial collection agencies who know they are competing for the placement. Competing quotes on the same ledger are the only reliable way to see what your accounts actually price at.
External links go to the marketplaces' own sites and forms. This site may earn a referral fee at no cost to you - it never changes the data above, and no individual agency pays to appear in our research.
Common questions
How much does a collection agency charge?
Commercial collection is normally contingency-based - a share of what is actually recovered, commonly 10-40%. Account age drives the rate more than balance size: fresh accounts under 90 days commonly run 10-25%, 90-180 days 15-30%, 180 days to a year 20-35%, and over a year 25-40%. Some agencies also offer fixed-fee early-stage demands at roughly 15-20 dollars per account.
Will using an agency damage my customer relationship?
It can, which is why how an agency communicates matters as much as its rate. Ask about contact frequency, tone, dispute handling, and whether early-stage work is done as reminders under your name before escalation. Many agencies offer a softer pre-collection product for exactly this reason.
How long do I have to collect an unpaid invoice?
Statutes of limitation are state law and commonly run 3-6 years for commercial obligations, varying by whether the debt rests on a written contract, an open account or an oral agreement. In many states a partial payment or written acknowledgement can restart the clock - which is worth knowing before agreeing to a payment plan on a very old balance.
Are collection fees recoverable from the debtor?
Sometimes - it depends on your contract and state law. Where your terms and conditions provide for collection costs and interest, and the applicable state permits it, those amounts may be added to the claim. That clause is worth having in your standard terms before you need it; ask your counsel to review it.
Does the FDCPA apply to business debts?
No. The Fair Debt Collection Practices Act defines 'debt' as an obligation of a consumer arising out of a transaction primarily for personal, family or household purposes - business-to-business obligations fall outside the statute entirely. That does not mean B2B collection is unregulated: state collection statutes, phone-consent rules, contract terms and ordinary law still apply.
Put a compliance review out to competing quotes before comparing rates
Two free marketplace paths: one request brings back multiple vetted commercial collection agencies who know they are competing for the placement. Competing quotes on the same ledger are the only reliable way to see what your accounts actually price at.
External links go to the marketplaces' own sites and forms. This site may earn a referral fee at no cost to you - it never changes the data above, and no individual agency pays to appear in our research.