Debt collection agencies are increasingly using text messages as their primary method of communicating with consumers. While this may seem convenient, it also raises serious legal concerns under the Fair Debt Collection Practices Act (FDCPA).
FDCPA Basics
The FDCPA is a federal law that regulates how debt collectors can communicate with consumers. One key protection: collectors cannot disclose your debt to third parties, except in very limited circumstances (like talking to your attorney).
FDCPA Communication Restrictions Re: Third Parties
Collectors are prohibited from communicating with anyone other than you, your spouse, or your attorney. Friends, family members, roommates, or coworkers? Off-limits. If they reveal your debt to these third parties, that’s an automatic violation of the law.
FDCPA Text Message Update
Today, many debt collectors use technology-driven platforms like TrueAccord and Indebted to send text messages instead of calls or letters. While text messaging may seem modern, it doesn’t change the rules: debt collectors must protect your privacy.
Unintentional Third-Party Disclosure Is Still Illegal
Here’s the catch: even if the debt collector didn’t intend for your friend or family member to see the message, that’s not a defense. The FDCPA doesn’t generally care about the collector’s intent (except for certain limited claims under § 1692d(5)). If your phone’s text preview shows a debt collection message, and a third party sees it, that’s a violation.
Possible Claims for You
If you’ve received a debt collection text and your phone’s notification was visible to a third party (like a family member, friend, or coworker), you may have a legal claim under the FDCPA. You could be entitled to statutory damages of up to $1,000 plus actual damages and attorney’s fees.
Final Note
Debt collectors are increasingly relying on technology. As they push the boundaries of how they contact you, remember: the FDCPA’s rules still apply, and your privacy must be protected.