Scare tactics from a creditor?

Question

My husband's been unemployed since Feb of this year and we haven't been able to pay the credit cards. This one creditor's been calling my mother in Tennessee and today called my Mother in law here in Washington telling them they should pay my debts.

I called this woman back and she insisted I do a 3 way call with a relative so we could arrange a settlement (she claimed to know my relatives financial situations). She told me I HAD to do this or I would face criminal charges.

Was this ok for her to do, or is it considered to be some form of harassment?

Answer 1

Your relative has nothing to do with your debt. If this woman continues to call your family and discussing your finances, have them contact the their phone co and have it tapped. After it's recorded, the phone will go after the collection agency.

Answer 2

That's harassment. You should try negotiating directly with your creditors and work out some plan for repayment of your debts. That shows good intent and will make it easier for you in the long run.

Answer 3

Collectors are the absolute scum of the earth, and will play by their own rules until they are called on it.  Just don't take their calls until you have your situation figured out, if they continue to harass file a complaint they will knock it off real quick.

Answer 4

This is definitely harassment. A creditor is not supposed to contact your relatives to inform them of your debt. Whoever the company is, they are not following the laws in order to collect the debt. If I were you, I would put in a compliant to the Better Business Bureau to inform them of the company's actions.  Don't feel bad because I am currently in the same situation myself and I had a creditor to hang up on me due to the fact that I have been unemployed for almost four months and not able to make big monthly payments or pay the balance in full as they asked. I am in the process of putting in a complaint myself and I would suggest you do the same.

Answer 5

Boy, this is a tough one.

The Fair Debt Collection Practice Act specifically forbids disclosure of personal matters to third parties, but that does not apply to the original creditors, which by your question is who I assume has been calling. Had this been a collection agency, I'd advise you to immediately start drafting a lawsuit for their violations.

However even though the FDCPA does not apply to original creditors, many states have adopted their own versions of the law which DOES include them, and I've heard Washington has some very consumer friendly laws. Also, I'd imagine that there HAS to be some kind of privacy law outlawing what they do, but this is a situation I haven't dealt with before.

Personally, I'd be filing complaints with the BBB and the Attorney General in Washington, who is very proactive in dealing with consumer complaints. Also check to see if you have any protection at the state level that prohibits this kind of action by the creditor.