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Collections Calls by Lender

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Question: 
We have a customer who is one month behind on his mortgage payment for a 2nd. We have called him several times to inquire about this and he has not returned any calls. We are now calling him at work. He is saying he can sue us for harassment. Does he have a leg to stand on? Are we in the wrong? We haven't sent a letter to him and his most recent statements show his past-due amount but not his late charges. Can he sue us? Is there a reg associated with this? Any information would be very beneficial. Thank you.
Answer: 

This would be covered by the Fair Debt Collection Practices Act or a state law. In many cases the FDCPA may not be applicable, but a "mirrored" state law will.

Harassment is when you call repeatedly. Likely you are not doing this. But if you look at Sect. 805, you will see that if the consumer states they are not allowed calls at their place of employment, you should ask when and where you can call and end it. You cannot call them at their place of employment for fear the customer would lose their job and suddenly your debt may not be the biggest loss you face.

You would next resort to certified mail and "field calls" to the borrower, and legal action.

First published on BankersOnline.com 11/15/04

First published on 11/15/2004

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