Legal / Laws
When is it legal for debt collectors to contact employers?
Can a debt collector contact a debtor’s employer about a debt they owe? The answer is yes but with limitations. The Fair Debt Collection Practices Act (FDCPA) allows debt collectors to contact certain third parties, including employers, to get the debtor’s contact and location information. It, however, limits them from revealing details about the debtor’s debt and the nature of their call. So, When is it legal for debt collectors to contact employers?
Other circumstances that permit debt collectors to contact employers are if the creditor wins a judgment against a debtor and the court allows them to garnish wages.
The law on debt collectors’ contact with employers
The FDCPA allows debt collectors to contact an employer to confirm the debtor’s employment. Collectors can access the employer’s contact information from credit reports, the original creditors, or other third parties.
Even though debt collectors can contact the debtor’s employer, there are limits on what they can discuss. Although the collector has the legal right to find out information about the debtor, they also have a legal obligation not to disclose why they are calling. Whenever a debt collector contacts any third party to get contact information, including the employer, the law prohibits them from revealing that they are a debt collector or collecting a debt.
There are also limitations to the number of times collectors can contact an employer or third party. For example, a collector can only contact employers once unless they permit them to contact them again or the collector believes the employer gave them false information.
When is it legal for debt collectors to contact an employer?
Legal contact between a debt collector and an employer or their human resource department can exist. For example, a debt collector can legally contact a debtor’s employer to:
- Verify the debtor’s employment with that company.
- Request the debtor’s phone number and physical address.
Any other contact violates a debtor’s rights, according to the FDCPA.
Impact of a wage garnishment
Suppose a creditor sues a debtor and wins a judgment against them. In that case, they can use various methods, including wage garnishment, to collect money owed. The debt collector can contact an employer after they have won a lawsuit judgment and gained the court’s permission to garnish wages.
Whom can collectors contact?
Generally, a debt collector can’t contact third parties, such as employers, about debt, subject to a few exceptions. For example, a collector can communicate with a debtor’s lawyer if they have one. They can also contact spouses, parents (only if the debtor is a minor), and co-debtors. However, the law prohibits them from making these contacts if the debtor sends a letter asking them to cease communication.
So if a collector talks to other people about a debtor’s debts or broadcasts the information around town to embarrass them into paying, they can file a case for collector harassment.
How to quickly recover amounts owed
Some laws, such as the FDCPA, protect consumers against abusive debt collection practices. Violating such rules can give the debtors grounds to sue for harassment, further frustrating debt collection efforts. You can make the debt collection easier by selling your debts or judgments to reputable agencies like Creative Judgement Solutions. They provide a hassle-free way to recover monies owed quickly.
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