Caliber Home Loans Unlawfully Shares Debt-Related Information with Third-Party Vendors, Class Action Alleges

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A proposed class action claims Caliber Home Loans, Inc. has violated a federal debt collection law by disclosing consumers’ private, debt-related information to unauthorized third parties.

Per the case, although the Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from communicating with anyone other than the consumer “in connection with the collection of any debt” (aside from few exceptions), Caliber Home Loans “exceeds its authority” and communicates with third-party vendors in connection with the collection of consumers’ debts.

The plaintiff, a Boca Raton, Florida resident, says she received several letters from Caliber Home Loans regarding a past-due mortgage. The letters, dated June 17 and June 18, 2020 and January 4, 2021, each stated, “THIS IS AN ATTEMPT BY A DEBT COLLECTOR TO COLLECT A DEBT AND ANY INFORMATION OBTAINED WILL BE USED FOR THAT PURPOSE,” according to the suit. 

The lawsuit surmises that Caliber itself did not print and mail the letters to the plaintiff but instead hired third-party vendors to do so on the mortgage servicer’s behalf. As part of the process, Caliber provided information regarding the plaintiff’s debt to unauthorized third parties, the case charges.

Per the suit, the sharing of consumers’ information is part of the company’s routine practice, with Caliber’s own privacy policy stating that it “does disclose your personal information to certain third-party vendors that assist with the origination or servicing of your loan” and shares consumers’ personal information, including Social Security numbers, account balances and payment history, for “everyday business purposes.”

“Unfortunately for Caliber, such sharing of information in connection with the collection of consumer debt violates the FDCPA,” the complaint alleges.

The plaintiff further claims that Caliber shared her personal debt-related information with Caneel Group, another third-party vendor who subsequently contacted the woman for loss mitigation purposes. According to the case, Caliber has maintained “consistent communication” with Caneel Group regarding the plaintiff’s debt “up until the present day” and called the woman’s counsel as recently as May 10, 2021 on behalf of Caliber.

The lawsuit looks to represent anyone who, within the past year and through the date notice is sent to the class, was sent a debt collection communication on behalf of the defendant in connection with the collection of a consumer debt that was prepared, mailed or sent by a third-party vendor.

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