Debt Collection Compliance

Debt Collection Compliance


If all debt collection activities are restricted to debt collection activity only, these calls then fall outside the TCPA's definition of a "telephone solicitation." Thus, federal DNC regulations are not applicable. However, there are state-specific requirements to consider and if collection calls are placed with an ATDS, debt collectors MUST honor consumer requests that calls cease to their mobile phones. This is considered revocation of consent under the TCPA.

The TCPA also allows debt collectors to leave prerecorded messages with consumers, subject to the restrictions applicable to calling wireless numbers and the FCC rules relevant to prerecorded message identification requirements.

Some requirements impacting debt collection activities include the following:

  • Obtaining express consent for live and prerecorded calls made with an ATDS to wireless numbers
  • Stating federal and state disclosure requirements
  • Adhering to calling time restrictions
  • Immediately honoring revocation of consent made through "any reasonable method"
  • Honoring any DNC requests made in writing
  • Avoiding harassing or abusive acts
  • Maintaining records as required

Potential Risks

Under the TCPA, state AGs may bring law suits in federal court for actual damages or fines of $500, whichever is greater. If a company knowingly violated the law, that amount can be tripled to $1,500 per willful violation. Further, some states have their own rules applicable to debt collection activities and are able to set their own financial penalties; thus, the amounts vary from state to state. However, it’s important to keep in mind the possibility of PR damage to your organization. The effects of negative publicity can be worse for a company long-term than the fine.

How We Can Help

Our qualified experts understand the impact certain requirements can have on your debt collection activities and will bring procedural expertise to your organization regarding these issues.

Failure to comply with relevant legislation can have a devastating impact on your business. Don't take chances - let our experts help! CompliancePoint has a variety of services that companies can leverage to meet their Debt Collection Compliance goals.

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