Can they look up information and call friends and family for information about a client? My mortgage company recently called a family member and asked them to go and put a note under our door to give them a call. We had not given them this person's phone number or information. I have had, in the past, other creditors threaten to do this. How much information can they divulge to the friend or family member?
2007-04-02 08:34:33 · 5 answers · asked by Blue Eyed Baby 5 in Business & Finance ➔ Credit
Can a collection agency contact family and friends?
Yes. Creditors regularly contact friends, relatives, employers and former employers of debtors to get a current phone number or address of the debtor. However, repeated phone calls or contacts to third parties may violate the law.
SIDEBAR: The creditor violates the FDCPA if the third party is informed that the creditors are trying to collect a debt.
2007-04-02 09:00:12 · answer #1 · answered by Anonymous · 0⤊ 0⤋
I have read that they can contact just about anyone while searching for you. However, they are not supposed to discuss the details of the account with just anyone. If it is a co-signor or someone that you have given them permission to tell, they can discuss what is owed and any problems that are happening. If it is not someone that is somehow on the contract or you have given the company permission to divulge, then they cannot give details on the account. They can contact the people and they can ask where you are and they can ask that a message to contact them be forwarded. They are not supposed to say that you are behind on payments or give details of that nature. In fact, I don't think they are even supposed to say what the loan was originally for. Also, they are really prohibited from threatening these people and making them think they can be punished for not forwarding their information. Some collection agencies even threaten friends and relatives and try to make them pay the debt. That is absolutely illegal.
In the end, the creditors can contact friends and family while attempting to contact you.
2007-04-02 08:42:51 · answer #2 · answered by A.Mercer 7 · 3⤊ 0⤋
It depends entirely on the credit agreement that you signed with them when you got the loan.
You remember those pages and pages of paperwork that you always meant to get around to reading, but didn't?
Buried in there are their "rights" regarding what they can and can't disclose to whom, and what they can and can't do to track you down.
Most of the time, companies have a "privacy" policy, but this only protects the specifics of your personal information - i.e. they can't give out your SSN, except as needed for collection of the debt.
So, what you'll have to do in the future, is READ the credit agreement completely, ASK for a copy of their privacy and collection policies, and then DECIDE whether you want to do business with such a company.
And no, it is NOT illegal for a company that you are doing business with to attempt to locate you for purposes of collection - even if it means using whatever personal information they have about you and harrassing your family to do it.
If you want to make sure your family and friends are "kept out of it," then you need to stay IN CONTACT with the creditor, even if it's to tell them every time they call that you can't pay!
2007-04-02 08:43:50 · answer #3 · answered by jbtascam 5 · 0⤊ 0⤋
As a bank rep I know when we take a mortgage we ask for the closest person not living with you. We input their name, address and phone number so I am sure it is legal. However, I have never heard of contacting a customer through this method unless the loan was delinquent.
2007-04-02 08:45:34 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Yes, they need to work hard to track down deadbeats like you.
2007-04-02 08:49:18 · answer #5 · answered by Anonymous · 0⤊ 0⤋