QUESTION
Does confidentiality apply to the company as an original creditor?
Asked on Sep 14th, 2013 on Bankruptcy - Michigan
More details to this question:
I have filed a chapter 13. My lawyer advised me to cancel checks and close the account due to having a payday advance loan. The company has started to call personal references. When they called one reference, they told them, the company name, that they were looking for me, and some details of the debt that they were trying to collect. I know a debt collector cannot divulge this type of info, due to Confidentiality. It is very embarrassing.
3 ANSWERS
Debt Collection Attorney serving Chicago, IL
Partner at
Edelman, Combs, Latturner & Goodwin, LLC
2 Awards
The Fair Debt Collection Practices Act, which restricts third party contacts, does not apply to creditors. However, the Department of Financial and Professional Regulation might take a dim view of the collection practices you describe, so I suggest a complaint. Also, if the lender is not licensed by the Department (e.g., an Internet loan), the loan is illegal and there may be substantial statutory damages (the claim must be disclosed on the bankruptcy schedules). Finally, the conduct you describe is a violation of the automatic stay and your lawyer should file a contempt motion.
Answered on Sep 17th, 2013 at 2:45 PM
Besides the embarrassment, if you are already in your Chapter 13 and they are calling during the Chapter 13, that is a violation of the law. Contact your bankruptcy attorney for assistance in putting a stop to the calls.
Answered on Sep 17th, 2013 at 2:44 PM
Appellate Attorney serving Grosse Pointe Farms, MI
at
Musilli Brennan Associates, PLLC
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Tell your lawyer, the actions of the creditor sound like a violation of federal law and the automatic stay.
Answered on Sep 17th, 2013 at 10:02 AM