Legal Question in Credit and Debt Law in New York

Re: Credit informatin

It is IILEGAL for them to discuss the details of the debt by federal law, throughout the United States, not just under NYS law. Specificallu, it is a violation of the federal Fair Debt Collection Pracrices Act (FDCPA).

The Fair Debt Collection Practices Act (FDCPA) which is section 1692 of Title 15 of the U.S. code (15 USC 1692), which is U.S. federal law, provides as follows under FDCPA Section 805 (15 USC 1692c) (COMMUNICATION IN CONNECTION WITH DEBT COLLECTION)in FDCPA 805(b) (15 USC 1692c(b)) (COMMUNICATION WITH THIRD PARTIES): The creditor generally cannot disclose details of your debt to any third party not included on thre following list: WITHOUT the prior CONSENT of you, the debtor, a debt collector may NOT communicate with ANY person OTHER than the debtor, or his/her attorney, or "a consumer reporting agency if otherwise permitted by law",or the creditor, or the creditor's attorney, or the debt collector's attorney.

Section 804 of FDCPA does allow the debt collector to communicate with third parties other than those listed above in order to LOCATE the debtor, (NOT to verify employment), but even then, the debt collctor "shall NOT state that such consumer owes any debt." (FDCPA Section 804(2))

I must note that there is an exception written into this law, where the debt collector can communicate with third parties not on this list without your consent if it is "reasonably necessary to effectuate a post judgment judicial remedy.

Moreover, my preliminary research indicates that consumers have brought substantial lawsuits against debt collectors under FDCPA SECTION 813, asking for substantial monetary dmaages, where the debtor SUES the debt collection agency for, among other complaints, the debtor's emotional distress, due to embarrassment, etc., caused by the debt collector's ILLEGALLY disclosing the debt to a third party.

Note also that the creditor in this case may also have violated applicable state laws in addition to violating the federal Fair Debt Collection Practices Act.

Re: Credit informatin

No, it is not legal to divulge personal information concerning the details of a debt to third parties.

They are permitted to contact the person to try and locate you, that's all.