May's Top Ethics Complaint Question: Communicating with Consumers via Telephone

Published: Friday, June 17, 2005

The top ethics complaint for May concerned debt collectors communicating with consumers via telephone. A collector violates the Fair Debt Collection Practices Act (FDCPA) by employing harassing or abusive practices when communicating with a consumer. Harassment includes, but is not limited to, threats of violence, the use of profane language, and repeatedly or continuously calling a consumer. Although the FDCPA does not specify that a certain number of calls constitutes harassment, the FTC has suggested that six collection calls in one hour probably violate the Act, whereas a call the day before and the day after a payment is due would most likely not be considered harassment. In addition, state law may limit the number of times a collector may contact a consumer.

A collector may not call a consumer at a time or place known to be inconvenient to the consumer. A consumer does not need to inform the collector in writing that such calls are inconvenient, as verbal notification is sufficient. Therefore, if a consumer notifies a collector verbally that telephone calls are inconvenient, the collector should cease communicating with the consumer via telephone. Unless the consumer requests that all communications cease, however, the collector may continue to communicate with the consumer in writing.

A collector may not call a consumer at her place of employment if the collector knows or has reason to know that the consumer may not receive such calls. A collector would know that calling a consumer at her place of employment was inconvenient if the consumer notifies the collector directly not to call her place of employment or if the collector learns from a third party, such as a secretary, that such calls are prohibited. A consumer is not required to provide written notice that such calls are not allowed at her work. Additionally, a collector should not contact a consumer at work if the collector has general knowledge that such calls would be inconvenient. For instance, the collector may be aware that the consumer works as a teacher, and they frequently cannot accept calls while on duty. State laws may also further restrict contacting a consumer at her place of employment.

Upon receiving a written cease communication request from a consumer, a collector is prohibited from communicating with the consumer, except to inform the consumer that the collector is ceasing collection efforts; that the collector may pursue a specified action; or that the collector intends to invoke a specified remedy. No other additional communication, verbal or written, with the consumer is permitted. Debt collectors are not obligated to comply with a verbal cease communication request.

For state regulations concerning communication with consumers via telephone, please see State Laws Governing Oral Communication with a Consumer (E-Compliance # 60).

This article is provided by ACA International's Legal and Government Affairs Department.