Question:
A collection agent called me yesterday, claiming (falsely) that I had
co-signed a friend's student loan, and that I would now be liable for
the unpaid balance since it had gone into default. The agent claimed that
she could not locate my friend and that therefore my wages would
soon be garnished.
In fact, my friend is easily locatable and listed in the telephone
directory. I did *not* co-sign my friend's loan; my friend only used me
as a reference. My friend was not happy that the collection agency
had called me instead of her, since this loan is her problem and not mine.
I can't figure out why the collection agent called me at all, nor why
the agent felt the need to lie to me like this.
Did the collection agency break any laws with this phone call?
Is there any state or federal agency that I can complain to about this?
Answer:
Q: Did the collection agency break any laws with this phone call?
Is there any state or federal agency that I can complain to about this?
A: I'm not a lawyer so I'm not even going to venture a guess on what laws
may have been broken, but I know who the right agency is to talk with
regarding collection agency activities: it's the Massachusetts Division
of Banks (http://www.magnet.state.ma.us/dob/dob_main.htm). Their
Consumer Assistance Unit is responsible for- among other things-
complaints and problems related to collection agencies operating in
Massachusetts.
I had a harrowing experience with a New Jersey-based collection agent
last year that involved repeated harassing phone calls, threats to call
my employer, friends, relatives and neighbors, and other actions that
were clearly illegal, according to my attorney. A five minute call to
the CAU resulted in discovering that the agency wasn't licensed to
operate in MA- it gave me enough ammo to get the sleazeball away from
me once and for all the next time he called.
They're part of the Office of Consumer Affairs, which is an absolute
godsend: one of the few appropriate uses of my tax dollars this state
has, imho.
