The knock of the door startles you, but it is what your neighbor has to say that sends you reeling. A debt collection agency like National Recoveries, Inc. sent your neighbor a letter asking about your financial status. How did the third party debt collector obtain your neighbor’s address? The answer is by inputting your address into Google’s search engine and reading the list of names and addresses of the people that live near your home. The more important question should be do you have any legal tools to prevent a bill collector from contacting anyone else that you know?
Fortunately, you have one of the most powerful consumer protection laws on the books to protect you against overly aggressive debt collection tactics. Enacted by the United States Congress, the Fair Debt Collection Practices Act (FDCPA) contains dozens of provisions that ban previously legal debt collection practices. A debt collection agency cannot threaten you in any way, such as threatening to contact a third part regarding your debt. In fact, the FDCPA makes it illegal for a third party debt collector to discuss your debt with anyone, except with you.
Why a Debt Collection Agency Can Contact a Third Party
When a spouse, a parent, or one of your siblings co-signed a credit card or a personal loan application, you bolstered your financial strength to get approved for credit. Maybe you have a minor blemish on your credit record, or you wanted to take out credit that exceeded the standard credit limit imposed by a lender. Whatever the reason, there are two signatures on the application, which means there are two parties that are responsible for staying current with debt payments.
The FDCPA makes a couple of exceptions to the no contact third party provision written into the landmark federal consumer protection law. As the most cited exception, a third party debt collector such as National Recoveries, Inc. has the legal power to contact the person that co-signed your credit card or personal loan application. Any topic is fair game for the bill collector, including questions that ask when the co-signer expects the debt to move from delinquent to current.
Clear Violations of the Third Party Provision of the FDCPA
Spouses typically are the third parties that co-sign loans. Debt collection agencies leverage the power of peer influence by contacting spouses to get the primary borrower to take action on a credit card or a personal loan debt. If your spouse did not co-sign the credit card or the personal loan application, a bill collector cannot contact your spouse to discuss anything concerning the outstanding consumer debt. The company cannot ask your spouse to pay back the amount owed, nor can the debt collection agency inquire about your family’s other financial obligations.
Speak with a State Licensed FDCPA Lawyer
You do not have to put up with frequent violations of the FDCPA. By contacting an experienced consumer protection attorney, you will receive expert legal counsel that should get a third party debt collector to back off. Schedule a free initial consultation today with a highly rated FDCPA lawyer.
*Disclaimer: The content of this article serves only to provide information and should not be construed as legal advice. If you file a claim against National Recoveries, Inc., or any other third-party collection agency, you may not be entitled to compensation.