Illegal Use of Text Messages in Collections Triggers $1 Million Penalty

Aaron Doud · 30th Sep 2013, 08:25 AM

SubPrime Auto Finance News

Thought this was an interesting article and one that SMS providers should be aware of.

imsolutionsgroup · 30th Sep 2013, 10:26 AM

Thanks for the post.

Jack Gordon · 30th Sep 2013, 10:57 AM

Interestingly, this company got sued for violating the Fair Debt Collection Practices Act (FDCPA), not the Telephone Consumer Protection Act (TCPA), which would generally cover illegal texting practices.

In other words, they didn't get nailed for sending texts. They got nailed for communicating with consumers without the disclosures required of debt collectors by federal law (i.e. This message is from a debt collector. We are attempting to collect a debt, and any information obtained will be used for that purpose...). The fact that they used SMS for their method of communication seemed almost irrelevant.

I doubt anyone here would be considered a debt collector bound by the FDCPA, and therefore have liabilities similar to this company.

Many here, however, would have liability for indiscriminate marketing texting, if the consumer recipients or the FTC chose to pursue it. The federal statutory fines alone are from $500-$1500 per text.

Watch your p's and q's. If you are violating the rights of consumers, there are plenty of ways you can be made to pay.

HawkU · 29th Jun 2014, 03:48 AM

Originally Posted by Jack Gordon

Interestingly, this company got sued for violating the Fair Debt Collection Practices Act (FDCPA), not the Telephone Consumer Protection Act (TCPA), which would generally cover illegal texting practices.

In other words, they didn't get nailed for sending texts. They got nailed for communicating with consumers without the disclosures required of debt collectors by federal law (i.e. This message is from a debt collector. We are attempting to collect a debt, and any information obtained will be used for that purpose...). The fact that they used SMS for their method of communication seemed almost irrelevant.

I doubt anyone here would be considered a debt collector bound by the FDCPA, and therefore have liabilities similar to this company.

Many here, however, would have liability for indiscriminate marketing texting, if the consumer recipients or the FTC chose to pursue it. The federal statutory fines alone are from $500-$1500 per text.

Watch your p's and q's. If you are violating the rights of consumers, there are plenty of ways you can be made to pay.

Interesting indeed. Sounds like the plaintiff could have brought forth a complaint for TCPA damages as well.

For those consumers who know the power of the TCPA it really gives them some sharp teeth with a nasty bite.

JTV · 7th Sep 2014, 04:38 PM

This is why it's so important to always stay above-board in regards to regulations and the law when doing business like this. Any potential gain is not nearly worth the risk of a massive fine (at the least) that you're taking. Slow and steady wins the race - I've known more than a few get-rich-quick schemers who have blatantly violated the TCPA and paid dearly for it later on. Check yourself before you wreck yourself, right?

30th Sep 2013, 08:25 AM	#1
Aaron Doud Sales & Marketing War Room Member Join Date: 2011 Posts: 2,813 Thanks: 716 Thanked 1,696 Times in 954 Posts	Illegal Use of Text Messages in Collections Triggers $1 Million Penalty Share on: SubPrime Auto Finance News Thought this was an interesting article and one that SMS providers should be aware of.
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30th Sep 2013, 10:26 AM	#2
imsolutionsgroup Advanced Warrior War Room Member Join Date: 2012 Location: Philadelphia, PA Posts: 629 Thanks: 39 Thanked 197 Times in 103 Posts	Re: Illegal Use of Text Messages in Collections Triggers $1 Million Penalty Share on: Thanks for the post.
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30th Sep 2013, 10:57 AM	#3
Jack Gordon Pulp Entrepreneur War Room Member Join Date: 2007 Location: Jack Rabbit Slims Posts: 1,201 Thanks: 1,216 Thanked 1,518 Times in 753 Posts	Re: Illegal Use of Text Messages in Collections Triggers $1 Million Penalty Share on: Interestingly, this company got sued for violating the Fair Debt Collection Practices Act (FDCPA), not the Telephone Consumer Protection Act (TCPA), which would generally cover illegal texting practices. In other words, they didn't get nailed for sending texts. They got nailed for communicating with consumers without the disclosures required of debt collectors by federal law (i.e. This message is from a debt collector. We are attempting to collect a debt, and any information obtained will be used for that purpose...). The fact that they used SMS for their method of communication seemed almost irrelevant. I doubt anyone here would be considered a debt collector bound by the FDCPA, and therefore have liabilities similar to this company. Many here, however, would have liability for indiscriminate marketing texting, if the consumer recipients or the FTC chose to pursue it. The federal statutory fines alone are from $500-$1500 per text. Watch your p's and q's. If you are violating the rights of consumers, there are plenty of ways you can be made to pay.
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7th Sep 2014, 04:38 PM	#5
JTV HyperActive Warrior Join Date: 2010 Posts: 100 Thanks: 10 Thanked 26 Times in 24 Posts	Re: Illegal Use of Text Messages in Collections Triggers $1 Million Penalty Share on: This is why it's so important to always stay above-board in regards to regulations and the law when doing business like this. Any potential gain is not nearly worth the risk of a massive fine (at the least) that you're taking. Slow and steady wins the race - I've known more than a few get-rich-quick schemers who have blatantly violated the TCPA and paid dearly for it later on. Check yourself before you wreck yourself, right?
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