QUESTION
We are a large mortgage banker. Our concern involves our
servicing unit trying to collect a debt and the prohibitions against
communications with third parties in debt collection. We often are not sure
about the guidelines for communicating with the consumer in such circumstances.
Please let us know what prohibitions affect these kinds of communications?
ANSWER
The Fair Debt Collection Practices Act (FDCPA) sets forth
certain guidelines for communicating with the consumer via a third party. The
FDCPA is Title VIII of the Consumer Credit Protection Act, which also includes
other federal statutes relating to consumer credit, such as the Truth in
Lending Act (Title I), the Fair Credit Reporting Act (Title VI), and the Equal
Credit Opportunity Act (Title VII).
Although there are a few exception cases, for the most part,
in collecting any debt, a debt collector may not communicate with any person
other than:
1. The
consumer;
2. The
consumer’s attorney;
3. A
consumer reporting agency if otherwise permitted by law;
4. The
creditor;
5. The
creditor’s attorney; or
6. The
debt collector’s attorney.
[15 USC § 1692c(a)-(d), inter alia; also see Federal Trade
Commission Staff Commentary on the Fair Debt Collection Practices Act]
The debt collector may communicate with other persons, as
follows:
1. With
the consumer’s prior consent given directly to the debt collector;
2. With
the express permission of a court of competent jurisdiction; or
3. As
reasonably necessary to effectuate a post-judgment judicial remedy. [Idem]
Please note that “consumer” includes a consumer’s spouse,
parent (if the consumer is a minor), guardian, executor, or administrator. [Idem]
Jonathan Foxx
President & Managing Director
Lenders Compliance Group
