Creditor Debt Collection and Privacy Issues

[nquisitive]

Hello,

I recently fell behind on a vehicle payment. The bank that holds the loan on my vehicle also has previous relations with a relative of mine (not a spouse). The bank took the liberty of contacting this individual in an attempt to collect the payment that was behind and disclosed personal information about my account.

This prompted my family member to contact me and become very irritated and pretty much sever our relationship.

Is there any legal recourse for this action? The relative is not on any of my loans as a co-signer. I understand that since the creditor is the one attempting to collect the debt, they are not held to the FDCPA- however I would imagine that they have to be held to some sort of standards?

Any help would be greatly appreciated.

 

[Michael Wechsler]

If you're looking at a windfall, forget it. What are your damages? I'm sure that most attorneys will not take your case on a contingency fee so, if you want to sue, you're going to pay to prosecute. Quite frankly, I'd guess that most judges or arbitrators will not look at your defaulting status kindly in trying to sue on the FDCPA, especially here. The "between the lines" here is that a relative helped you get a loan and you didn't pay the bank and is now furious. And now you want money from the bank after not paying them?

 

[nquisitive]

That's actually not the case at all. The relative did not help me get the loan. The way I was introduced to the bank was via the relative, but that's where the relationship ends.

The damages would be the fact that my relationship with my relative has been completely destroyed due to the fact that the bank disclosed information to him that was none of his business.

My question really wasn't about whether it was right or wrong, my question was whether or not a bank could legally disclose information to someone not related to your account in an effort to collect a debt?

 

[Michael Wechsler]

That's actually not the case at all. The relative did not help me get the loan. The way I was introduced to the bank was via the relative, but that's where the relationship ends.

Typically a good customer will refer someone to the bank and the bank is quite happy to make the customer's referral happy... but that's just speculation. Let's get to the heart of the matter.

The damages would be the fact that my relationship with my relative has been completely destroyed due to the fact that the bank disclosed information to him that was none of his business.

My question really wasn't about whether it was right or wrong, my question was whether or not a bank could legally disclose information to someone not related to your account in an effort to collect a debt?

1) Why was your relationship with the relative damaged? How would and why should your problem paying a debt impact your relationship with a blood relative?

2) It could be wrong, I don't know all the circumstances. On the surface it would seem so. But so what? Even if there might be a technical violation, if your damages are negligible and cost of enforcement high... then it's just an exam question. How much do you think any court will entertain in damages? $100? This isn't as if you had AIDS and your records were revealed to the general public or that your records were released to the entire neighborhood. You're talking about 1 person.