Can a bank send out letters to family and frends if you get behind on your payments?
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Can a bank send out letters to family and frends if you get behind on your payments?
My mom is behind a few months on her home equity payment with and I just got a letter in the mail informing me of this. I was just wondering if that was legal for them to do that? I don’t know if I was the only one they sent a letter to or not.
Asked on February 21, 2012 under Bankruptcy Law, Florida
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
It is not illegal for a lending institution to send out notices to family and friends of a debtor that the debtor is behind in his or her payments on a loan in any state in this country. However, from a business standpoint the sending of such letters is not a very good decision by the lender.
One reason why you may have received such a letter is perhaps you co-signed for your mother's loan and you are getting notice of the delinquency as a result.
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