If an individual has a loan in only his name and the loan becomes past due, can the financial institution try to collect or disclose any information pertaining to the loan to the spouse of the individual? Is doing so a privacy or Regulation P violation?
The Fair Debt Collections Practice Act (FDCPA) specifically prohibits sharing information such as this. They may call and ask for you, but they can't say why they are calling in this blunt manner.
The FDCPA doesn't apply when a lender is collecting his own debt. However, some states have laws that mirror the FDCPA that do make this applicable or they have a similar law. Reg P, (Privacy) also prohibits a bank from disclosing the nature of their relationship with their consumers.
If you believe confidential information has been disclosed, you can contact that institution. If you feel you have been harmed, contact an attorney.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
The Fair Debt Collections Practice Act (FDCPA) specifically prohibits sharing information such as this. They may call and ask for you, but they can't say why they are calling in this blunt manner. 