Can a collection agent call and tell my employee about an outstanding business debt without my authorization?
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Can a collection agent call and tell my employee about an outstanding business debt without my authorization?
A collection agency recently called about a business debt. I asked them to send me their proposed settlement and I would consider it. Then 2 days before the settlement due date the agency calls again. One of my employees answered; I was not available and the collector was told that. So she told the employee that there was an $1,800 debt that she was collecting and that she was willing to settle it for $750. She told the employee she emailed me the settlement and I needed to pay right away before the settlement offer would be voided. Is it legal for her to tell my employee about my business?
Asked on February 15, 2012 under Business Law, Massachusetts
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
There is nothing per se illegal as to what the third party collection agent did in telling one of your employees about the debt you supposedly owe assuming that the information given was truthful without your authorization. However, from a business standpoint, the third party collection agent used poor judgment in telling your employee what you have written.
If you can resolve the debt in full satisfaction for $750 via a written document and $1,800 is owed, I would try and resolve it sooner rather than later.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.