Can Mortgage Collections Call Your Workplace?

Very little is an annoying--or embarrassing--as receiving collection calls at work. Federal law dictates when and how collection agencies can call consumers. Depending on the type of mortgage debt you owe, however, mortgage collectors may have the right to call you at work.

Facts

If you owe mortgage debt due to a foreclosure or short sale that has since been sold to a third party collection agency, debt collectors only have the right to call you at work if you have not requested, in writing, that all collection calls cease. The Fair Debt Collection Practices Act dictates that collection agencies must honor written cease and desist requests.

Significance

If you owe past-due mortgage payments and still own your home, the mortgage company won't sell the debt. Rather, its in-house collections department will contact you and request a payment. Because only third-party collection agencies are bound by the FDCPA, the mortgage company may continue to call you at work.

Considerations

Even if federal law doesn't restrict the mortgage company's collection department from calling you at work, that doesn't mean that the practice is legal. Some states, such as California, have laws restricting any collector from calling your workplace unless it is to verify personal information.

References

• Federal Trade Commission: The Fair Debt Collection Practices Act (Section 805)
• Privacy Rights Clearinghouse: Debt Collection Practices

Resources

• NEDAP: Debt Collection Basics
• CNN.com: Rogue Debt Collectors--How to Fight Them