Creditors harrassing my relatives (!)

I recently have begun the Chapter 7 process. One of my creditors (a credit union) has now sent threatening letters to my mother, sister, and brother. In these letters, the credit union demands that *they* attempt to resolve my debt. They even went as far as to include my account numbers!!!

I believe this is wrong in so many ways. My question is this: do they even have a legal right to do this? I've never seen or heard of this happening before.......

IBKevin, I couldn't agree with you more ! It is very wrong and I had the same thing happen to me! But the creditor called my next door neighbor :eek: Believe me that was humiliating.I called the creditor and got upset with them and questioned why they would do that and they VERY polietly said that they have the right to do that! So I checked into it further and I guess they can call a third party about a debt you owe as long as they do not say what the call is about or give an account number or balance due. That sucks !!

That is illegal for them to do that. I called my bank on that once when they called my mother about a credit card.

They absolutely can NOT do this. That is a privacy issue, and it is ILLEGAL.

Did you list these individuals as "referrences" on your credit applications? Because if you did, you also signed a consent to allow the creditors to contact the individuals listed to help them collect payment on outstanding debts.

To the best of my knowledge this is not a legal practice unless the people they are calling are co-signers on that particular debt. If you are dealing with an attorney I would find this out first, and if that is the case I would call and threaten legal action. There is also a site called ripoffreport that I would go to if I were you where you can post this situation. This is a pretty popular site, and having this story posted could hit them where it hurts: in losing potential customers.

I found these links
http://www.antitelemarketer.com/php/modules.php?name=FAQ&myfaq=yes&id_cat=2&categories=Bill+collectors#10
Can a bill collector call my friends or family in trying to collect the debt?
No. Unless you give permission to the bill collector to call them.

http://fair-debt-collection.com/searches/stop-collection-calls.html
Calling 3rd parties such as family, friends, employers, employees and neighbors is strictly prohibited when collectors already have your phone number!

http://www.truebloodlawfirm.com/consumer_protection/debtcollectors.html
Contacts with work, family and friends

Debt collectors are prohibited from most contacts with people other than you. When contacting others, the debt collector may not state that you owe a debt, or say anything disparaging about you.

Home and friends: Except for your spouse, debt collectors generally may contact family or friends only to obtain your current "location information," which is defined as your home address, work address, and home phone number.

Work: Under California law, a debt collector or creditor may make only one phone call to your work, and only for the purpose of verifying employment. Any other communications must be made in writing, and are limited to requesting location information. Only if your employer fails to respond to a letter could the debt collector call again.

I also saw this:
IMPORTANT NOTE! Let me emphasize that section 805(b)2. specifically says, "debt collectors may not call third parties under the pretense of gaining information already in his possession." Thus, calling your family, friends, neighbors, employees and employer and so forth, after they already have your phone number, is a serious violation of the FDCPA and should be reported to your State Attorney General immediately.


http://fair-debt-collection.com/searches/stop-collection-calls.html

This is some great information everyone. None of the individuals that were sent the letter were cosigners. Every letter also cleary shows my account number, which most certainly is private information. I've got a call into my attorney on this already, I'll let you know what I find out. ;)

Did you list these individuals as "referrences" on your credit applications? Because if you did, you also signed a consent to allow the creditors to contact the individuals listed to help them collect payment on outstanding debts.
What?
What sence does that make? I actually had Ford Motor Credit call me about my brothers account. They wanted information on him. I told them to not call me anymore about someone elses account. I then started to get calls at work about his account. It was beginning to affect my job. I then asked to talk to a manager and one came on and said what you said, he used me as a reference. I didn't sign anything that said he can use me as a reference, and even if he does, so what? I didn't co-sign for the loan, why do I have to be harassed because he used my name as a reference???

What?
What sence does that make? I actually had Ford Motor Credit call me about my brothers account. They wanted information on him. I told them to not call me anymore about someone elses account. I then started to get calls at work about his account. It was beginning to affect my job. I then asked to talk to a manager and one came on and said what you said, he used me as a reference. I didn't sign anything that said he can use me as a reference, and even if he does, so what? I didn't co-sign for the loan, why do I have to be harassed because he used my name as a reference???

Interesting isn't it!?

I recently have begun the Chapter 7 process. One of my creditors (a credit union) has now sent threatening letters to my mother, sister, and brother. In these letters, the credit union demands that *they* attempt to resolve my debt. They even went as far as to include my account numbers!!!

I believe this is wrong in so many ways. My question is this: do they even have a legal right to do this? I've never seen or heard of this happening before.......

I had this happen to me in my 20's, i ran up a $4,000 in debt. the evil
creditors had my mom thinking that they or I would be going to jail, nevertheless, mother caved in, and paid them $2,000 to settle, surely
it pissed me off, it was in my name, I could have used that $2,000 :)

and just days ago, credtiors called my wifes mother asking for private
information regarding her account, where is she, whats her phone number, where is she working, etc, etc.. weather it is illegal or not, they are doing it.

I had this happen to me in my 20's, i ran up a $4,000 in debt. the evil
creditors had my mom thinking that they or I would be going to jail, nevertheless, mother caved in, and paid them $2,000 to settle, surely
it pissed me off, it was in my name, I could have used that $2,000 :)

and just days ago, credtiors called my wifes mother asking for private
information regarding her account, where is she, whats her phone number, where is she working, etc, etc.. weather it is illegal or not, they are doing it.
I know that a debt collector can contact a third party to obtain 'your' whereabouts but cannot disclose why they are calling. If you request that the creditor not contact you again.
If your mother received a call asking for personal information, the caller could be trying to dupe your mom into giving up her info for some criminal purpose.

Good to know this is not legal. They've been calling my disabled father in law and hounding him for my debts!!

I had this happen to me in my 20's, i ran up a $4,000 in debt. the evil creditors had my mom thinking that they or I would be going to jail, nevertheless, mother caved in, and paid them $2,000 to settle, surely
it pissed me off, it was in my name, I could have used that $2,000 :)
That doesn't sound nice. You wanted to keep the $4,000 you borrowed from creditors, and you also wanted $2,000 from your mom without repaying anything? What the creditor did was wrong, but thinking you're entitled to your mother's money is also wrong.

Creditors are not evil. They want the money back that you borrowed and agreed to repay. How can that be evil?

Um, Lightning, I'm beginning to think you were actually struck by lightning at some point in your life. Do you scan every post in hopes of finding something to pick apart?

How can you say that creditors are not evil? Any company who allows a collector to harass a man's mother and scare her into paying her son's debt is pure evil. Any company who allows a collector to harass a person's friends and family is evil. Yes, I know they are entitled to get their money back, but that shouldn't give them permission to use any means necessary. Involving people who have nothing to do with a person's financial affairs is just plain cut-throat. Before I filed for BK I had a collector calling my mother. She had absolutely nothing to do with my debt and the only reason they even got a hold of her was because I lived there for a while and they got the number somehow. After I moved out, this collector still called and harassed my mom beyond belief. One day she just told him to stop calling and he went so far as to call her a piece of shit. Now, what did my mom do to deserve that? Not a damn thing. No one has the right to harass a person's family in the hopes that the person in debt will be embarrassed into paying the bill. If the person in debt has no money, they have no money and trying to embarrass them or scare them isn't going to work.

Why am I even bothering to respond to you, Lightning. You probably think it is okay for collection agencies to do whatever they think it takes to collect money.

Why am I even bothering to respond to you, Lightning. You probably think it is okay for collection agencies to do whatever they think it takes to collect money.
No, I don't.

FloridaGirl...ditto girl. I work for the BBB and we are bombarded with calls from consumers who have had creditors calling neighbors, co-workers and have even showed up at their workplace. Under the Privacy Act they are not allowed to call you at work without your permission much less show up there. Of course we all know they are entitled to their money - that goes w/o saying but their methods of collecting are clearly out of line. If the consumer who owes the debt dodges the creditor, the creditor is entitled to call other names on the consumer's list. Collection agencies MO is to harrass until the consumer cries uncle. They are rude, insulting and threatening. They receive a percentage of what they collect so they believe any tactics they use are fair game. There is a collection agency board that governs and takes complaints on these agencies. Call your local BBB; they will give you the number for your area. We have called id on our phone; I did not purposely avoid my creditors but I refused to tell them the same thing repeatedly. Involving one's family members, especially parents is reprehensible. As for Lightning's response...you said it all.

NCO Financial group called my FIL the other night and were horribly rude to him. He is an old man and has nothing to do with the account they were calling on (or any of our accounts for that matter) and the man was arguing with him on the subject. He was trying to talk my FIL into getting a loan for us and paying our debt off to them and then getting the money back from us. When my FIL didn't agree he started berating him and calling him names.

The guy's name was Mr. Marks and I hope he never calls my house. I will find it hard to be civil with him.

Go here for complete article, which explains how credit card companies have evolved into the wolves they now are:

http://www.legalhelpers.com/legal_helpers/brc_articles_6_credit_card_factors.html


Snippets:

"Many experts say the profitability of the credit card industry began more than 25 years ago when the banking industry successfully eliminated a critical restriction: the limit on the interest rate a lender can charge a borrower.

Deregulation, coupled with a revolution in technology that enables the virtual real-time tracking of personal financial information and the emergence of nationwide banking, resulted in the widening availability of credit cards across the economic spectrum. But for some, credit costs much more than it appears.

Whether you're a college student considering your first credit card, or a seasoned veteran of the credit card game, consumers ought to consider the following points.

Universal Default: Even if you make your credit card payments on time, the credit card bank can raise your interest rate automatically if you're late on payments elsewhere -- such as on another credit card or on a phone, car, or house payment -- or simply because the bank feels you have taken on too much debt."

"FICO Score: Your credit score -- known as a FICO score -- has become a vital statistic for many Americans and can be widely shared. It is used to determine how much you can borrow, how much you pay for life insurance, if you can rent a home, and, as already noted, it can be a factor in determining the interest rate you pay on a credit card."

Late fees: In 1996, the U.S. Supreme Court in Smiley vs. Citibank lifted the existing restrictions on late penalty fees. Back then, fees ran to $5 or $10, and usually did not exceed $15. After the Court's decision, fees soared, reaching upwards of $30. Since then, the amount of revenue the companies generate from fees (including late charges, over-the-limit fees, and charges for returned checks) has doubled.

Monthly minimums: Many Americans are inattentive about their credit card accounts. Approximately 35 million Americans pay only the required minimum -- as low as 2 percent -- of their balance each month. Sticking to that rate, it could take years to clear their debt and they'll end up paying far more than the cost of the items or services they purchased.

Predatory Lenders: There is no federal limit on the interest rate a credit card company can charge. If you've ever looked at the return address on your statement, you may notice your credit card issuer is located in a state such as South Dakota or Delaware. That's because these are the states that have either weak or no "usury laws" meaning there is no cap on the interest rate that is charged. The federal government once had national usury laws that set a cap on the amount of interest that could be charged on a loan. However, the federal government repealed these protections and some states put no new usury laws in place. That's why Citibank, the issuer of Mastercard, moved to South Dakota, which has no cap on interest rates."

"Read the fine print: It's important to read the fine print on your credit card agreements. Buried in the legalese that people so often ignore is a provision that allows the company to change your interest rate, at any time, for any reason, provided they give you 15 days notice."

Well none of them ever gave me 15 days notice unless it was hidden in a bill or something.