February 5, 2010

By: Michelle Grinberg, Esq.

Debt collection agencies would like to use all available avenues of communication, such as text messaging, in their attempt to collect consumer debts.  However, the use of text messages to contact consumers may lead to various violations of the Fair Debt Collection Practices Act, 15 U.S.C. 1692, et seq. (“FDCPA”).  For example, debt collectors are unable to know which consumers have unlimited text messaging plans.  Causing charges to be made to consumers for the purpose of communication violates the FDCPA.  Another issue is unlawful third party communication.  There is always a possibility that the cell phone has been provided to the consumer by an employer or the cell phone may be shared my multiple people.  If a third party views the text message regarding the existence of a debt, the debt collection agency has violated the FDCPA.  However, if the FDCPA is revised in the future to take into account emergent technologies, such as text messaging, debt collectors will likely opt to use this new communication method since it would be more cost efficient.