Trying to catch up on your bills has turned into an exercise in futility. No matter what you do, your personal debt continues to rise, while your bank account makes its descent towards nothing.
You begin to feel an overwhelming amount of stress that morphs into acute anxiety when you find out a debt collection agency has contacted a neighbor regarding your debt. How you handle the third party contact will determine whether you are able to climb out of the financial hole.
Dealing with a third party debt collector such as Paramount Recovery Systems requires the services of a licensed consumer protection attorney who thoroughly understands every provision written into the Fair Debt Collection Practices Act (FDCPA).
Considered the consumer Bill of Rights, the FDCPA outlaws overly aggressive debt collection tactics that include repeated phone calls made at odd hours of the day. The landmark federal consumer protection law also makes it illegal for bill collectors to discuss consumer debts with third parties.
When Can Paramount Recovery Systems Contact a Third Party?
Under the FDCPA, it is illegal for a debt collection agency to contact a third party to discuss any aspect of your debt. A third party can be a friend, a neighbor, a family member, or a professional peer. Discussing a debt encompasses both direct and indirect references to your personal debt.
For example, Paramount Recovery Systems cannot ask a friend to settle your outstanding credit card or personal loan account. A much more indirect method of discussing your debt involves a professional colleague taking a call from a third party debt collector that wants to know if you have any other delinquent debts.
The FDCPA makes three exceptions to the no contact third party provision. Paramount Recovery Systems has the right to contact anyone that has co-signed a credit card or a personal loan application.
Third party debt collectors are also allowed to contact third parties to obtain consumer contact information, which under federal consumer protection law is limited to a mailing address and the best phone number to call. Finally, a bill collector is permitted to contact a third party, if you have given the company permission to reach out to a friend, a neighbor, or a family member.
How the FDCPA Addresses Contact with Your Spouse
Far too many consumers mistakenly believe that any debt they owe is also the responsibility of their spouses. However, the FDCPA clearly puts your spouse on the financial hook for an outstanding debt you have incurred that the spouse is legally obligated to pay off.
Paramount Recovery Systems can reach out to your spouse, if your spouse’s name appears on financial documents associated with the debt.
Unlike the FDCPA clause that bans forbids bill collectors from making more than one attempt to contact a third party, a debt collection agency like Paramount Recovery Systems can contact a co-signee on a credit card or personal loan account as many times as the company wants.
Take control of your seemingly impossible to solve personal debt situation by speaking with a licensed FDCPA lawyer. Most consumer protection attorneys offer a free initial consultation to get the legal ball rolling.
*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 Paramount Recovery Systems or any other third-party collection agency, you may not be entitled to compensation.