Re: finance loan companies?

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Posted by Bob on June 07, 2001 at 04:26:35:

In Reply to: finance loan companies? posted by donna on June 07, 2001 at 02:35:37:

The main law restricting collections behavior, the federal Fair Debt Collection Practices Act, *only* applies to third-party collectors, *not* to original creditors.

The internal collections department of a creditor tends to have fewer restrictions. Yes, they can typically show up at your residence, as long as they do so at a reasonable time. (If they bother you in the middle of the night, you might have grounds to file a police complaint for "disturbing the peace" or somthing like that.) It seems that thy could also go to the address of the person you listed as a reference, to look for you.

However, unless the reference actually co-signed in some way, and legally agreed to be responsible for paying the debt, the collectors should *not* be demanding that that person pay anything. Creditors and collectors can *not* legally demand money from someone whom you merely used as a reference on your loan application. Although, in this case, they might claim that your mother-in-law voluntarily paid without them making specific demands - it could be their word against hers.

I think the applicable laws would probably be different for each state. You might try calling your local courthouse or state Attorney General's office and asking for specifics. Also try a local library, and ask if they have any guides to your state's laws on this sort of thing.

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: The main law restricting collections behavior, the federal Fair Debt Collection Practices Act, *only* applies to third-party collectors, *not* to original creditors. : The internal collections department of a creditor tends to have fewer restrictions. Yes, they can typically show up at your residence, as long as they do so at a reasonable time. (If they bother you in the middle of the night, you might have grounds to file a police complaint for "disturbing the peace" or somthing like that.) It seems that thy could also go to the address of the person you listed as a reference, to look for you. : However, unless the reference actually co-signed in some way, and legally agreed to be responsible for paying the debt, the collectors should *not* be demanding that that person pay anything. Creditors and collectors can *not* legally demand money from someone whom you merely used as a reference on your loan application. Although, in this case, they might claim that your mother-in-law voluntarily paid without them making specific demands - it could be their word against hers. : I think the applicable laws would probably be different for each state. You might try calling your local courthouse or state Attorney General's office and asking for specifics. Also try a local library, and ask if they have any guides to your state's laws on this sort of thing.

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