Legal News for Credit Union Managers Since 1990
« Re-Opening Bankruptcy Case Denied: Prejudice to Creditor
Credit Union Repossession of Mobile Home »
23
Dec
2020

Fair Debt Collection Practices Act (FDCPA); Third Party Communication Prohibited

The Fair Debt Collection Practices Act (FDCPA) prohibits a debt collector from communicating with third parties, such as a debtor’s employer, and conveying information concerning the debt.
 
Here, an attorney sent a letter to debtor demanding payment to be made within 72-hours, and sent a copy of the letter to debtor’s employer.
 
The attorney who sent the demand letter argued that he is not subject to the FDCPA as he is not normally engaged in debt collection and he is not a debt collector as defined by the FDCPA. The attorney also maintained that it was his secretary’s error in sending a copy of the letter to debtor’s employer.

The court found that communications from a debt collector to debtor’s employer is strictly prohibited and constitutes a blatant violation of the Act.

The court noted that sending a copy of a hostile demand letter to a debtor’s employer is an inherently provocative act which ordinary experience would suggest should not be done. Peter Sluys v. Albert Hand (U.S. District Court, S.D. New York, No. 92-7972).

Author: Charles R. Harroun



This entry was posted on Wednesday, December 23rd, 2020 at 8:51 am and is filed under Employees, National. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

Leave a Reply

Your comment

Powered by WP Hashcash

  • Recently Posted Articles written by: Charels R. Harroun, Attorney at Law

    • Nondischargeable Debt: False Financial Statement
    • Credit Union Freezes Member’s Account
    • Reaffirmation, Redemption or Surrender of Collateral
    • State Wage Garnishment Valid For Other States
    • Right of Rescission – Refinance
    • Insurance Lapse: Lift Stay & Repossess Collateral
    • Collection Letter Not Required Before Filing Suit
    • Fraudulent Check Endorsement by Borrower
    • Creditor Required to Release Lien
    • Chapter 13 Plan Cures Arrearage
    • Defective Automobile Lien Enforced

  • Website Builder

2009-2020 Copyright Harroun, P.C. | Credit Union Legal Newsletter powered by WordPress and Uchilla
Subscribe: Entries (RSS) and Comments (RSS)