If you’ve received a text message from a debt collector, you may be wondering if that’s legal. While it is certainly uncommon, there is no prohibition against debt collectors contacting you via text messages. Knowing your rights and the law can help alleviate some of the stress associated with debt collection.
Debt Collection Law
The Fair Debt Collection Practices Act (FDCPA) is the federal law that outlines what debt collectors from third parties can and cannot do when collecting a debt from a consumer. The law was passed in 1977, but it does not address many modern forms of communication.
For example, texting was not introduced until 1992, which was 15 years after the FDCPA was enacted, and the law has not been updated to address debt collection activity via text message or other modern communication mediums. As of 2020, the FDCPA had not been updated to reflect modern practices.
The law may provide some protection. It limits (and sometimes prohibits) the use of automatic telephone dialing systems and unsolicited phone calls without “prior express consent,” which means that you have indicated that they can contact you this way.
Debt collectors may argue that providing a cell phone number on your credit card or loan application essentially means giving consent to be contacted at that number regarding issues related to your account – a claim that has been accepted in courts, at least by companies sending marketing calls.
Text Message Collection Lawsuits
In the civil case Gutierrez v. Barclays Group (2011), which was a case between a credit card holder and the original issuer of the credit card, the court ruled that text messages from Barclays to Gutierrez were legal until the point at which Gutierrez responded with a message to “stop sending texts.”
The court determined that the defendant, Barclay’s, could not pursue litigation against the Gutierrez family based on the premise that consumers who provided consent to receive phone calls could withdraw that consent through oral or written communications or via a third party – for automated or recorded systems only. This ruling does not apply to companies or collectors who contact you to discuss collections.
In September 2013, the Federal Trade Commission settled a $1 million claim with a debt collector accused of violating FDCPA related to text messages, though not directly because of the texts themselves.
In this specific lawsuit, the company was fined for not identifying itself as debt collectors rather than the text messages themselves. The Federal Trade Commission did not directly address text messages as a means of communication, which may indicate that it is an acceptable method of contacting debtors as long as the FDCPA rules are followed.
Debt Collector Communication
There are no specific rules regarding debt collectors and text messages, but there are rules that govern how debt collectors can communicate, regardless of the means of communication:
- Collectors can only contact you between the hours of 8 a.m. and 9 p.m. local time. They must identify themselves as debt collectors and cannot disclose your debts to any third party except your spouse or attorney. They cannot contact you repeatedly (or in this case, send repeated text messages) to annoy or harass you. They cannot contact you directly if they know you have an attorney. They cannot use abusive or profane language. They cannot threaten you or threaten any legal action they cannot or do not intend to take. They must cease communication with you, via texts and any other means, if you send a written message indicating that you no longer wish to communicate with them.
Know
On your rights with debt collectors. If you are contacted via text messages – or any other means – and no longer wish to communicate this way, send a stop message and refrain from contacting via mail.
Complaints can be directed to the Financial Consumer Protection Bureau and the Attorney General in your state if the collector ignores your stop message and continues to contact you or violates your rights in any other way.
Source: https://www.thebalancemoney.com/can-debt-collectors-send-text-messages-960579
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