Do Emails Made Outside Of Hours Of Service Violate FDCPA?
The Fair Debt Collection Practices Act prohibits debt collectors from taking certain actions or calling at certain times. However, the law was drafted in 1977, long before widespread email, text messages, and social media existed. Bill collectors are allowed to use these avenues to contact debtors. But other restrictions apply such as when the debt collector can contact an individual. Debt collectors are not allowed to contact you before 8 a.m. or after 9 p.m. Does the same rule hold true for text messages and emails? However, guidance concerning whether these cases violate the Fair Debt Collection Practices Act appears to be lacking. In other words, no one is sure whether or not such a lawsuit will prevail.
One such lawsuit was filed by a Pennsylvania debtor under the FDCPA on behalf of a class of individuals who were emailed between 9 p.m. and 8 a.m. or on the weekends. The lawsuit was filed in 2023 and the defendant is a company known as TrueAccord. The plaintiff claims the company sent him an email at 10:13 p.m. on Saturday, November 12, 2022 in violation of the FDCPA. The debtor claims he experienced emotional distress as a result of the notice. This included anger, restlessness, and increased heart rate, according to the lawsuit.
The Consumer Financial Protection Bureau clarified its rules in 2021. The rules began to allow collection agencies to use email, text messages, or social media to seek the repayment of a debt. Collections agencies are increasingly relying on electronic messages to reach debtors because the cost associated with such modalities is significantly cheaper than making phone calls or sending letters, according to industry observers.
But this leaves open the possibility that plaintiffs can file lawsuits against collection agencies that send emails outside the hours of service restrictions.
Outcome of the lawsuit is unclear
The outcome of the aforementioned lawsuit is unclear. It was sent to arbitration and later listed as dismissed. None of the parties to the lawsuit were willing to speak about the litigation, how it ended, or how the final decision was reached.
What’s clear is that the debt collection industry is going to begin relying on email, social media, and text messages more extensively than ever before since it’s cheaper than contacting consumers the old fashioned way. Will this mean that the law will change too? Will debt collectors sending emails be able to contact consumers whenever they want? Or will they have to abide by the prohibition on contacting consumers from 9 p.m. to 8 a.m.?
At this point, the answer is unclear.
Talk to a Columbus, OH FDCPA Attorney Today
Have you received unwanted and harassing phone calls from debt collectors? If the debt collectors violated the provisions of the FDCPA, you may be entitled to file a lawsuit against them. The Columbus FDCPA attorneys at Kohl & Cook Law Firm, LLC are here to help you file that lawsuit. Call our office today to schedule an appointment, and learn more about how we can help.
Source:
law.com/njlawjournal/2024/01/08/thats-going-to-lead-to-a-lot-more-lawsuits-new-litigation-trend-emerging/
