How the TCPA and FDCPA are Affecting Consumer Collections in a High Technology Environment

No matter who is making an effort to collect on a debt, there are very specific laws that must be followed.  The Telephone Consumer Protection Act (TCPA) sets forth some very specific provisions that may make it very difficult for a company to use automated technology to collect on debt.

One example of how the TCPA affects collections is that it prohibits automated recordings or any artificial voices to call any cellular phone without getting the express permission from the Debtor.  In an age when home telephone service is becoming obsolete, and most Americans carry only a cell phone, this law can cause a serious impediment to any automated collection efforts.  If an agency does violate the TCPA—the penalties are severe-$500.00 per automated call plus attorneys fees and maybe even punitive damages or a class action lawsuit.

In addition, the FDCPA requires a (FOTI) message be left when leaving any message  which basically states that certain identifying information be provided when leaving a message with a debtor – name of caller, name of entity, and the phone number or address of the entity – leaving the indebted party unlikely to return the message and pay the debt . It also opens up the collecting entity to potential third part disclosure lawsuits as well.

Despite an ever-automated world, federal regulations such as the TCPA and FDCPA are making automated collections more and more difficult.  This means that your business or the collection firm you have hired will need to use more non-automated resources, such as having staff on hand to place the calls, and lawyers with specific knowledge of collection law.  This will ensure that in the process of collecting the debt, no fines will be incurred, and the settlement will be worth the time, effort, and money expended to retrieve the debt.