smartcookie-
Without knowing the facts of this specific case, I can tell you that this strategy of contacting neighbors, relatives, friends and coworkers about a debt is a dirty one employed by collection agencies. It is quite likely illegal as well.
The purpose of this type of contact is to:
-embarrass the (alleged) debtor by publicizing the debt to acquaintances.
-go fishing for additional info to be used for leverage vs. the debtor (don’t give your neighbor’s cell phone number, any other contact info, or even respond to to the collector).
-enlist the help of an uninvolved third party in pressuring the debtor.
The collector has no right to involve you in their debt collection efforts, and you owe them nothing response-wise.
I’d notify the neighbor about what the store is doing, unless there’s a reason not to – e.g. the neighbor might grow belligerent to you.
If you’re interested in more info on this topic, Google “Fair Debt Collection Practices Act”
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(the info below was cut-and-pasted from a site that specializes in helping debtors who are being harassed)
Can a debt collector contact my friends, neighbors and relatives?
Yes, a debt collector can call your friends, neighbors and relatives to try and locate you if you are dodging them or they can’t find you; however, if your friend, neighbor or relative asks them to stop calling, they must do so. When a debt collector calls your friend, neighbor or relative, they can only tell the third party who they are and who they are with (“I am with Acme Bank and I’m trying to locate John Doe”), but they cannot reveal your account number, that you have a delinquent debt, or other details of the delinquency. Of course, most people who receive such calls realize it is about a delinquent debt without the caller saying anything. Why else would they be so desperate to get in touch with the person that they would call them, right?
Debt collectors will even contact your neighbors across the street whom you don’t even know. They will ask your neighbor to leave a message on your door asking you to call them. Although this tactic is designed to embarass and humiliate you, The Fair Debt Collection Practices Act has not been interpreted to bar them from contacting your relatives and neighbors. Of course, these third parties might tire of receiving such calls and ask the collector to stop. In this event, the collector would be required to stop calling your neighbors and relatives.
Of course, the best way to avoid a debt collector from contacting your relatives, friends and neighbors is to not avoid their phone calls. They only call relatives, neighbors and friends when you are avoiding them.