Debt Collectors Consider Texting

No one can deny that text messaging is becoming a giant medium for exchanging data. Fast, painless, no speaking on the phone. No wonder that according to the latest statistics that are available there were almost 750 billion text messages sent in the U.S. in 2009, nearly two times the number from one year before. Actually, research and technology firm executive Michael J Koopmans recently predicted that money transfers will be the number one mobile application by 2012.

Bill collectors have stayed out of this field for now; The Fair Debt Collection Practices Act was a landmark legislation that took effect in the late 1970s and has strictly outlined how bill collectors can call and when. Seeing as this act is even older than a stereotypical “Saved by the Bell Cell phone” from the early 90s, it might be due time to tweak the law. But analysts are saying that any change in this area would have to come from consumers seeking change, not collectors.

Under the FDCPA, communications with debtors require a notice that the text is in fact from a debt collector, which leads to issues with the 160 character maximum length of money transferring messages. Another obstacle is determining who will pay the message. There is no real way for a collection company to know if a consumer has a plan that includes unlimited text messages; the kicker being that if a contact is paid for by the debtor, it is illegal.

Another potential issue for debt collection agencies is determining the ownership of the device itself. For Example, the debtor might be using a company owned wireless device. Said company may be monitoring the usage of the device, leading to third party disclosure issues if there were communications based in text about a debt.

Unfortunately, Congress needs to vote on health care, the budget, cap and trade and a number of other issues first before it can get down and tackle this text message issue. So time will tell.

Mallory Megan works for a debt collection agency. She also composes articles on business, finance, consumer spending and collection agencies.

Tagged with: business debt collection agency • clear debts • collections credit • commercial debt collections • credit card collection • credit collection • Debt Collection • Debt Collector • Debt Problem • debt recover • Debt Recovery • debt solutions • Law • loan collections

Filed under: Law

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