Third Party Disclosure Violation?

Question

I am currently just over 30 days past due on my car payment. Yesterday, a representative from my auto finance company called my mother (whom I listed as a reference on my finance application), told her that I am behind on my car payment and that I was going to lose my car if I did not contact their office immediately. Isn't this third party disclosure in the attempt to collect upon a debt and grounds for a lawsuit?

If so, what state would I have to pursue this lawsuit in? I live in Arizona, my finance company is based in Utah and my mother lives in Georgia.

Answer 1

You don't have the money to pay your car payment on time but you got funds to pay an attorney? You'd have to sue the lender in the county where they do business. The cost of filing suit would cost more than any what you'd get for the third party disclosure.

Your biggest stumbling block is proving that they discussed details of your loan with your mother. The finance company is going to say they contacted your mother in an effort to locate you and they simply left a message for you to call them. This would be perfectly legal.

If you don't want your mother to know you are behind on your bills, pay them on time or at least call your creditors and work out arrangements if you are going to be late. Car finance companies will do things like allow you to pay interest only and just add another payment to your loan term.

Answer 2

Sure it's ground for a lawsuit, but don't expect to get some sort of huge financial settlement out of it. The best you can expect is that a judge will order the collection firm to cease doing what it did to you.

If you want to pay an attorney to handle THAT, go for it.

Answer 3

I know that has happened to me before too. I used 3 relatives as references on my application and when I got in a bind once they called all three of them. I was so annoyed and embarrased. I wondered the same thing if that was legal but never persued it.