Quote from: Kaos on April 11, 2012, 08:50:40 PM

Quote from: casascius on April 11, 2012, 08:45:55 PM

The first thing you may want to do before getting in the debt collection business, debt collection 101 let's call it, is learn the correct spelling of the word debt.

noted!

In regards to the legality of it, I think this is open to interpretation. Not paying a peer loan is still considered theft. Also, in the spirit of System D and bitcoin creating a government-free, independent database again seems like the right way and nothing more than a more elaborate OTC implementation.

Again, I'm open to discussion... This is just an idea and a proposal...

One thing you may wish to be careful about is that violating debt collection laws in the US opens YOURSELF up to significant damages even if the debt is legit. I can't speak for other countries but US actually gives debtors pretty significant legal protection.

We are talking up to $1000 per violation. Those damages are punitive so the debtor doesn't have to suffer any actual damages (in the legal sense) to win. A debtor could collect more in damages then the amount of the debt.

http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm

If you go forward you will want to become very aware of the FDCPA. There are debtors in the US who use the FDCPA and sloppy debt collection practices by some companies to rack up hundreds of violations and then sue debt collection agencies for six figures. You will definately want to form an LLC or Corporation to protect your personal assets.

"Not paying a peer loan is still considered theft."
This is one example. Something as simple as this statement (even made casually) while attempting to collect a debt that would be a violation of the FDCPA. Not paying a debt isn't theft under US law. Failing to pay a debt is a contract dispute not a criminal matter. Indicating it is theft is a "false or misleading representation" regarding the legal status of the debt (see section 807).

http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf

That is just one example of the hundreds of regs which you could find yourself in violation of. Debt collection agencies spend a significant amount of money training collector, and continually monitoring/coaching/evaluating collectors to protect the company from damages. Good agencies know how to bend the rules without breaking them.

Now will any of your Bitcoin debtors ever decide to press you for violating the FDCPA? Probably not but you should be aware of the risk. It would be an interesting court case.