American Credit and Collections Website

[mdunn]

The FDCPA prohibits causing charges or fees to be made to any person for communications by concealment of the true purpose of the communication, such as but not limited to, collect telephone calls, telegram fees or a text where a debtor could be charged to receive or read that text.
As a creditor text messages and emails seem to be the preferred and most effective way to increase collections. One company I know has experienced a 12 percent lift in communication by using text messages and email. It seems that email or a text message as an avenue of communication is perceived as less evasive than a phone call, and your customer has the sense of being in control of when and if they respond.
Some collectors I have spoken with obtain consent from their customers before the sale for text messages to be used for future correspondence. They include this wording on the paperwork the customer signs when opening an account, such as the credit application, agreement or contract.

Something important to remember if you are thinking of doing this, all messages include a mechanism for the consumer to opt out of receiving further text messages at any time. This is to protect the consumer and the collector, especially since the law does not specifically address text messages being sent as a form of dunning. If you decide to send text messages about bills to your customers, make sure the customer is not charged for the text and that you as the company, incur that charge.
_________________
Sincerely,
Michelle Dunn