Page 16 - CARS Standard Program

Section 1692b: Acquisition of Location Information
When speaking with a third-party in attempting to locate a new address or POE for the consumer you should state that you are only attempting to locate a new address (or POE if the consumer is no longer employed there) for the consumer. Only if you are expressly asked should you reveal the name of your employer, and again, you are simply attempting to locate a new address and not for the purpose of repossession. If the recovery agent knows that the consumer is represented by an attorney he should immediately cease repossession efforts and advise the creditor. Misrepresentation, deceiving (pre-texting) in order to acquire information is a violation of this Section.
Example of repossession case law: In Madden v. Deere Credit Services the Court stated, in part, “A Breach of the Peace is a disturbance of the public tranquility, by any act or conduct inciting to disturb the public order.” Misrepresentation, deceiving (pre-texting) or divulging personal information about the debtor would be considered an act of conduct that violates the public conscience (order).
Section 1692c: Communication in Connection with Debt Collection
The recovery agent should not attempt to contact the consumer at a time or place that is considered to be inconvenient to the consumer. An example would be if the consumer works a midnight shift at their POE it would be reasonable to assume that they would be sleeping during the morning hours and continuously knocking on the consumer’s door or continuously ringing the doorbell during this time may very well be considered harassment. Also, if the recovery agent knows that the consumer’s employer does not allow communication with employees while on duty the recovery agent should not attempt to make such contact. And again, if the recovery agent is aware that the consumer has hired a lawyer to intervene regarding the debt the recovery agent should abandon the repossession attempt and notify the creditor immediately. In such situations and other situations where the consumer has displayed verbal threats the creditor may note in the repossession order, NO CONTACT.
Example of repossession case law: Again, we can cite Madden v. Deere Credit Services as a violation of public order and conscience when contacting debtors (or third parties) at unreasonable times or at the inconvenience of the debtor.
Section 1692d: Harassment or Abuse
A recovery agent may not engage in any conduct which would be considered to harass, oppress, or abuse the consumer or a third-party in an attempt to repossess collateral. The following conduct is a violation of this Section:
(1). The use of threat or use of violence or other criminal means to harm the consumer or a third-party in the attempt to repossess collateral.
(2). The use of obscene or profane language or language the natural consequence of which is to abuse the consumer or a third-party in an attempt to repossess collateral.
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