To clarify our response to Tracey Walsh's question (April 28) about whether creditors can hound a consumer's neighbors for information:
Creditors -- that is, the original company with which a consumer has a debt -- aren't bound by the federal Fair Debt Collection Practices Act; on the other hand, debt collectors -- third parties who purchase the debt from the original creditors -- do fall under the FDCPA.
We said it was illegal for debt collectors to discuss a consumer's debt with neighbors, co-workers or relatives without the consumer's consent or permission from a court. This is true; however, debt collectors can call neighbors or other third parties to seek location information, such as the consumer's home address, phone number or place of employment. In doing so, though, collectors can't disclose that they're seeking to recuperate a debt from this person and can't call the same third party more than once for location information unless they got incorrect information or were asked by the third party to call back.
Note that a consumer's spouse isn't considered a third party and may be informed of a debt even if he or she isn't a party to it.
