collection agency Tag

15 Sep Debt collectors using auto-dialers face BIG fines

The average consumer debt collector employee places 200 collection calls per day or 50,000 calls per year! How do they make so many calls? Most use a technology known as autodialing, even though the use of an autodialer by a collector often violates the Telephone Consumer Protection Act (TCPA).
The penalty for violating the TCPA is HUGE – Every illegal phone call carries with it a $500 penalty, and if the collector knows he is violating the Act, the penalty is tripled! As the name implies, an auto-dialer is a sophisticated computer system that constantly and continuously dials numbers on collection accounts. When someone answers the phone, the computer immediately delivers the call to a collector, and the account pops up on the collector’s monitor. So, if you are behind in your bills, you (and your family and your employer) are getting calls from your debt collectors – a lot of calls! Not every call using an autodialer is illegal. Most notably, a consumer debt collector can call a debtor at home using an autodialer. However, the following two acts violate the TCPA if an autodialer is used:
  • Making a collection call to a cell phone belonging to the debtor or any third party
  • Making a collection call to any telephone number not belonging to the debtor
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