Can a collection agent call and tell my employee about an outstanding business debt without my authorization?

UPDATED: Feb 15, 2012

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Can a collection agent call and tell my employee about an outstanding business debt without my authorization?

A collection agency recently called about a business debt. I asked them to send me their proposed settlement and I would consider it. Then 2 days before the settlement due date the agency calls again. One of my employees answered; I was not available and the collector was told that. So she told the employee that there was an $1,800 debt that she was collecting and that she was willing to settle it for $750. She told the employee she emailed me the settlement and I needed to pay right away before the settlement offer would be voided. Is it legal for her to tell my employee about my business?

Asked on February 15, 2012 under Business Law, Massachusetts


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

There is nothing per se illegal as to what the third party collection agent did in telling one of your employees about the debt you supposedly owe assuming that the information given was truthful without your authorization. However, from a business standpoint, the third party collection agent used poor judgment in telling your employee what you have written.

If you can resolve the debt in full satisfaction for $750 via a written document and $1,800 is owed, I would try and resolve it sooner rather than later.

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