In VanDyke v. Northern Leasing System, Inc., 2009 WL 3320464 (E.D. Cal. 2009), Judge Hollows held that a transaction for software to be used primarily in a small business was not subject to the FDCPA, explaining:
The amended complaint also concedes that plaintiff contracted with defendant to lease “virtual terminal software.” ( Id.) Although plaintiff does not specifically allege that this software was to use in her business, she does allege that defendant specialized in leasing and sales of various products to “small businesses.” ( Id.) The parties do not dispute that the product was for use in plaintiff’s business. Therefore, the transaction was not primarily for personal, family, or household purposes and does not qualify as a consumer debt under the FDCPA. As plaintiff has already had the opportunity to amend her complaint, she will not be permitted further leave to amend this claim.
Judge Hollows held, however, that a FCRA claim might stand. The Court explained that
Next, NLS contends that the credit report at issue was not a consumer report because it was obtained in connection with a commercial business transaction between plaintiff’s business and NLS. It is true that consumer reports related to business transactions do not qualify as consumer reports. Nevertheless, plaintiff alleges that NLS accessed her credit report six times in 2007, years after the parties’ business transactions ended. Plaintiff’s opposition states that she did not give permission for defendant to unlawfully access her credit report throughout her life whenever it wants, by using her old signature from 1999. (Oppo. at 4.) Such conduct, if true, would be outside the parties’ business relationship and outside the terms of the contract. Furthermore, at hearing defendant indicated that plaintiff was a guarantor for her business in the contract with defendant. Therefore, her personal credit could be affected by the alleged actions of defendant. Although the initial permission to obtain a credit report as set forth in the contract concerned commercial credit only, the allegations in the complaint do not pertain to the contract at all.