Can a bank send out letters to family and frends if you get behind on your payments?

UPDATED: Feb 21, 2012

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UPDATED: Feb 21, 2012Fact Checked

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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


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 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.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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