Knowing that you owe a business money is a stressful situation. You know you’re going to have collection attempts, including phone calls, text messages and written communication. You may even have to deal with them trying to contact you at work or calling your references.
It’s critical that you understand the limitations that creditors face when it comes to information they can disclose to others during their attempt to collect the debts. Federal law severely limits what they can say or ask.
Who can debt collectors contact?
There’s no limit to who they can contact for information about you, but they are typically limited to only being able to contact a person once. When they make contact, they can only ask where you live or work and for your phone number. They can’t disclose that they’re attempting to collect a debt from you.
Who can creditors discuss your account with?
In most cases, the creditor can only discuss the debt with you or your spouse unless you have a guardian or someone else who has legal authorization to discuss your finances on your behalf. They can also discuss the debts of a minor with the minor’s parent.
If the debt collector knows that you have an attorney, they must attempt to contact the attorney. They can only contact you if the attorney doesn’t respond to their attempts or if the attorney provides authorization for them to contact you.
Legal action is possible when debt collectors don’t follow applicable laws. Discussing the matter with someone familiar with these laws may make it easier for them to move forward with their claim.
