Expert: Kathleen Eads - 5/16/2006

Question
I am a small business owner in California and I rent musical instruments.  If it becomes necessary to call a delinquent account, what am I legally allowed to say and not say over an answering machine regarding their delinquency?  What if a family member or roomate answers the phone?
Thank you,
Andrew

Answer
Andrew,

The FDCPA indicates you are only allowed to discuss the debt with the indebted party.  Community property states will allow you to also discuss the debt with the debtor's spouse.  If the debtor provides permission for you to speak with someone else, you may do so.  If no permission exists, you are violating 3rd party disclosure laws, a federal offense.  

I have included a link to the FDCPA, which governs all consumer collection practices.  I would suggest you read this in its entirety, as it also tells what times you can call etc.  

http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm

Hope this helps!
Kathleen Crabtree