Collection Agency Being Unlawful?

[rhoni]

A collection agency has been trying to collect money I owe from a student loan from 10 yrs ago. They called the accountant at my workplace and told her they were going to garnish my wages and told her what company they were from. I had not gotten any documentation of a garnishment. The reason I know they contacted her was because she approached me with it. I thought collection agencies were not allowed to talk to a third party about your situation. I thought they could only call to verify your address and employment.
Please advise.

 

[mike]

A collection agency has been trying to collect money I owe from a student loan from 10 yrs ago. They called the accountant at my workplace and told her they were going to garnish my wages and told her what company they were from. I had not gotten any documentation of a garnishment. The reason I know they contacted her was because she approached me with it. I thought collection agencies were not allowed to talk to a third party about your situation. I thought they could only call to verify your address and employment.
Please advise.

First of all, was a judgment obtained against you? If so, then it is possible to garnish wages and in most jurisdictions that I am aware a write of execution needs to be filed and a copy is sent to your employer who is supposed to answer within a short period of time that is prescribed on the writ. I'm not sure of exactly what they can say but you might want to deal with the situation and perhaps this is a good thing that you have notice before it could get worse. You have to pay the debt and even if there was some wrong I don't think it's harmful enough for you to obtain any compensatory relief.

 

[aschro]

FTC FAQ on this...

Here's a great FAQ:
http://www.ftc.gov/bcp/conline/pubs/credit/fdc.htm

"May a debt collector contact anyone else about your debt?
If you have an attorney, the debt collector must contact the attorney, rather than you. If you do not have an attorney, a collector may contact other people, but only to find out where you live, what your phone number is, and where you work. Collectors usually are prohibited from contacting such third parties more than once. In most cases, the collector may not tell anyone other than you and your attorney that you owe money."

Also,
"How may a debt collector contact you?
A collector may contact you in person, by mail, telephone, telegram, or fax. However, a debt collector may not contact you at inconvenient times or places, such as before 8 a.m. or after 9 p.m., unless you agree. A debt collector also may not contact you at work if the collector knows that your employer disapproves of such contacts."

They would need a judgment to garnish, as prior post noted. If there's no judgment, this could possibly be construed as harrassment, but it really depends on the specific facts...

Alex