Under the California Rosenthal Fair Debt Collection Practices Act, creditors cannot legally contact consumer debtors that are represented by an attorney. Despite several phone calls from my office and written confirmation that we represented the debtor, the contact continued. NFCU is accused of (1) using profanity with my client; (2) threatening to call my client’s commanding officer about the debt; (3) threatening to garnish my client’s wages while he is on active duty and when a judgment did not exist; and (4) telling my client that he was a "disgrace" to the military.
Even after I filed the bankruptcy, NFCU continued to contact my client. So far, NFCU has sent my client 3 letters since we filed his bankruptcy petition. Each letter acknowledges notice of the bankruptcy filing and threatens to continue reporting negative information on my client's credit report, all in violation of the bankruptcy automatic stay. The continued contact with my client is also violates the California Rosenthal Act because my client has legal representation. I will be filing a motion for sanctions against NFCU in the very near future.
About the Author: Carl H. Starrett II has been a licensed attorney since 1993 and is a member in good standing with the California State Bar and the San Diego County Bar Association. Mr. Starrett practices in the areas of bankruptcy, business litigation, construction, corporate planning and debt collection.