Can lenders provide financial information to third-parties about business borrowers?

Scenario: A business owner is past due on his monthly payment on equipment purchased for business purposes. The collections/billing department shares information with the business owner's neighbor disclosing information about the equipment loan in an effort to collect quickly. Has the collections/billing department broken the law?|||Expect a lawsuit in a US district court(Dependent upon where you live.), if they find out about it. More likely citing the FDCPA. No you can't do that. You can't call, talk or harass neighbors about a borrower that may or may not live near them.








While most states do have consumer credit protection in place for their residents. Some do not. However the FDCPA covers the whole US. As does the FCRA.








The billing/collections department is still liable if this is proven by the respondent. And all it will take is them asking their neighbors.





i.e. Game Over.|||That would depend on the state in which this activity occurred. They are all different. While the law may not have been broken this absolutely represents an ethical violation on the part of the collections department. They need to be sent down the road.