Answer:
Answer by David Dickinson: This is NOT a privacy violation. You have a right to collect your past due loan. Read Question I.4 in the Privacy FAQ's here:
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I.4. Q. I made a loan to a consumer who defaulted. In trying to collect the bad loan, I wish to learn information to locate the defaulting borrower. I believe that a financial institution unaffiliated with me may have some helpful information about the borrower. If I were to ask that institution for information, I would disclose nonpublic personal information, such as the fact that I have a loan to a particular consumer. I previously notified my borrower that, among other things, I make disclosures as permitted by law. Must I allow my borrower to opt out of my question to the financial institution?
A. No. You may disclose nonpublic personal information to the financial institution without complying with the opt out provisions as necessary to enforce a consumer loan where the disclosure is required or is one of the lawful or appropriate methods to enforce your rights. Section 332.14(b)(1).
Answer:
Answer by John Burnett: Although there are no GLB privacy concerns here, there is a question of propriety. Personally, I don't consider it a problem to leave the name of the bank in addition to the name (or pseudonym) of the collector. But you don't want to step over the line and leave a suggestion of why you're calling. Don't say, "This is Dave Smith in the Loan Servicing Department of Last Chance National Bank." Instead, say something like, "Please give Dave Smith at Last Chance National Bank a call."
You don't know who's going to hear the message you leave.
First published on BankersOnline.com 3/7/05
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