contacting business associates about bill

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alliance77

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I have a quick question about the legality of the collection of a bill that I owe. I have not been able to pay it yet, and the business that is trying to collect it (not a collection agency, the original business the money is owed to) has contacted associates of mine and let them know about the bill that I owe. Not contacting them for my whereabouts or how to contact me, but rather to discredit me to anyone that they think I may be involved with on a professional level. Is this legal since this is not a collection agency? How should I handle it?
 
Sorry, some clarification. The bill is a personal bill and those being contacted are members of the executive commitee of a state-wide non-profit. I am also on the executive commitee of this non-profit, thus, all of our names are online on the website, and they are be contacted as such. Hope that provides the answers that you need.
 
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