Can Debt Collectors Legally Call Relatives of a Debtor?

Locating You

Debt collectors purchase debts in bundles from creditors. Debt collection packages may contain the account information for hundreds of accounts, but some accounts may be missing important contact information that debt collectors need to obtain payment from the consumer. Should a debt collector need to locate you, the Fair Debt Collection Practices Act (FDCPA) notes that it can contact your relatives in an effort to track down your current location.

While debt collectors can call your relatives, a company can only call each of your relatives one time. It does not have the right to telephone your relatives repeatedly about your debt. An exception to this rule applies if the collector has reason to believe that your relative has information about your location he did not divulge. In this scenario, the debt collector can call a second time.

When asking a relative about your location, a debt collector cannot reveal that he works for a collection agency, is attempting to collect a debt or request payment. The collector must give her name but can only disclose the name of the company for which she works if your relative asks for the company's name. Although debt collectors cannot disclose information about your debt directly to your relatives, when leaving messages on your answering machine, debt collectors must disclose the fact that the call is part of an ongoing effort to collect a delinquent debt -- regardless of whether another member of your household could hear the message.

The FDCPA's restrictions on disclosing information about your debts and telephoning your relatives only applies to third-party collectors. If your creditor has yet to send your account to an outside collection agency and forwards the debt to its in-house collection department instead, debt collectors working for the original creditor may call your relatives and can disclose personal information about the debt you owe. Some states, such as California, have restrictions that apply to debt collectors working for original creditors as well as third-party agencies. If your state laws do not place restrictions on collectors working for the original creditor and debt collectors have your relatives' telephone numbers, collectors may call your relatives repeatedly during the collection process.