Your Late Payments Shouldn't be Water Cooler Gossip: When Debt Collectors Contact Your Employer, and What to Do About It

You do your best every day to go to work to pay off your debt, and you strive to hide your stress from your boss and colleagues, not to mention, your family. Lately, it's gotten pretty bad. Every night you come home to strongly worded letters about how much you owe. You’re constantly hearing from scammers who promise you debt consolidation. And the calls from the collection agency have gotten so frequent that you silence your cell phone at your job. But what happens when the calls start going to where you work instead of you? Or maybe even to your boss directly? The law on whether a collector can contact your employer can be tricky, and it’s important to know your rights.rnCan a debt collector call my employer? In most cases, it is legal for debt collectors to contact your employer. But there are some limitations. The caller cannot reveal any details about the amount owed, to whom, or the reason why they are calling. Instead, collectors can reach out to your employer to confirm that you are employed, likely after they have gotten this information from your credit report, the original creditor, or another third-party. Most debt collectors will only contact your employer if they can’t contact you first. rnWhat can a collector say or ask? A debt collector can only contact your employer once, unless your employer gives permission for additional contact. A collector may also contact your employer again if they have a good-faith basis that your boss gave them false information about you. They may only verify your employment with the company and request your telephone number and physical address. Any other contact violates your rights under the Federal Debt Collection Practices Act (FDPCA), the law that governs the activities and behaviors of debt collectors and debt collection agencies collecting consumer debts.rnIs it legal for the debt collector to identify himself? No. Even though federal law permits a debt collector to find out information about you, they are prohibited from giving out information about why they are calling. They cannot reveal that they’re a debt collector or that they’re collecting a debt without facing severe fines and penalties. rnThis is an example of a phone call that violates the FDPCA: This is Sue from ACME Debt Collection. Your employee Becky, owes over $25,000 on her credit card. She’s been avoiding our phone calls. Can you tell me when she is in the office, where does she normally take her lunch, or anything else that I can use to help get ahold of her?rnAnd here is an example that doesn’t violate the law: This is Sue. Could you tell me your company’s physical address, and mailing address if they are different? Also, what is Becky’s direct dial?rnWhat about calling me, the debtor, at work? Collectors can call you at work unless they know (or have reasonable basis to know) that you’re unable to accept personal calls at work. For example, it is reasonable to know that an ambulance driver cannot take collection calls while on the job. You should consider advising the collector of your job’s policies by calling them or writing a letter. Once an agency know what the rules are, a collector can no longer dial your work number. rnDoes this rule apply to texts, faxes, and emails? Yes. The law defines “communication” broadly, and FDCA restrictions apply to texts, faxes, and emails as well. rnIs it possible my employer will still find out about my debt? Yes. A number of employers check credit reports as a condition of employment. And if you’re being considered for partnership or a promotion, they may check your credit history again. It will depend on your supervisor and company culture as to whether this information will negatively impact your hiring or performance review. rnHow can I stop a debtor collector from contacting my employer? There are some preemptive tactics you can use. First, write a debt-validation letter to delay collectors from making contact. It forces them to send proof that the debt is truly yours and that they’re authorized to collect payment. You can also send a cease and desist letter to the offending collection agency and ask them to stop contact. Also, if you decide to seek legal help, and the debt collectors know you have representative, then the collector must only contact your attorney and no one else, including your employer. rnIn sum, debt collectors cannot shame you into paying them back by trying to embarrass you at work. They cannot call your boss or other employees to tell them that you’re behind on your payments. Nor can they direct your HR department to garnish your wages (only a court can do that). Debt collectors can only speak to you and your attorney about your debt. Any other contact violates the law and you may have a case for money damages.