Any collector who uses a robocall, without first having a live person call to verify that the phone number is correct, is lazy and irresponsible. Aside from being a major nuisance, robocalls to a third party are always an improper disclosure because prerecorded calls are required to include the name of the company at the start of the message (per the TCPA). I've received dozens and dozens of calls like this, and now I know which of my neighbors are alleged to owe money. I say "alleged", because the companies making these calls are usually the same scofflaws who have been sued repeatedly for trying to collect nonexistent debts. Outlawing robocalls, particularly robocalls to third parties, would hurt the bad actors without having much impact on legitimate collectors.
I wouldn't have a problem with live callers using autodialers, except that the technology used by some collection agencies is so far behind the times. Telemarketers are able to stay within the required 3% abandonment rate, yet my experience is that the drop rate on live calls from collectors ranges from 50% to 100%. (Yes, I had one company hang up immediately every single time one of their agents called me. I'm not sure how this is profitable.) Extending the FTC's 3% rule to debt collection calls would address this issue.
A collector's toll-free number is the ideal number to display on Caller ID, since it allows the call to be returned from anywhere without incurring long-distance charges. It also lets the recipient know right away that it is not a personal call and is probably not from a local company. I'd much rather see an 800 number than a spoofed local number for a company that is really 1000 miles away (or in India). This spoofing is clearly a false and deceptive practice that is barred by the FDCPA, but still it occasionally happens.
The national database and licensing would be a good idea if it were used effectively to weed out the bad collectors and put them (and their corporate officers) out of business permanently. Not those who get caught up in technical violations over mini-Mirandas, but the ones who knowingly commit serious violations of the FDCPA, FCRA, and TCPA. As Tfleeman noted in his very insightful comment above, the "private policing" we have now has not been effective in stopping the worst abuses.
As for the main topic of this page, I think it's far better for a collector to leave a voicemail (with clear identification of the caller and callee) than to call the same number 50 times without leaving a message. The rules should encourage this rather than frustrate it. So, I would favor option #1, with the mini-Miranda deferred until the collector is sure he is talking to the right person.
Mslade, you have some valid points about the confusing Foti rulings, but I think you are wrong about the TCPA. This law has always applied to debt collectors, politicians, and even charities with respect to cellular phones. And it's not just one judge who has ruled in this way. The FCC and the courts have repeatedly affirmed it.
Are you suggesting collectors should be allowed to robocall cell phones of people who don't even owe the debt? What kind of backlash will there be against the collection industry when one of these misdirected robocalls contributes to a car accident or interrupts a senator during a meeting?
Tiffany, I think part of the problem is that the 2% of collectors who harass and abuse are responsible for a disproportionate share of the contacts that consumers have with your industry. Everyone (whether they owe a debt or not) has had an encounter with one of these bad apples, and then they want to take out their anger on you. And when you make an honest mistake and get sued for a technical violation, you pay the same penalty as a company that has deliberately harassed someone with 100 phone calls.
sw_in_the_midwest
1
Any collector who uses a robocall, without first having a live person call to verify that the phone number is correct, is lazy and irresponsible. Aside from being a major nuisance, robocalls to a third party are always an improper disclosure because prerecorded calls are required to include the name of the company at the start of the message (per the TCPA). I've received dozens and dozens of calls like this, and now I know which of my neighbors are alleged to owe money. I say "alleged", because the companies making these calls are usually the same scofflaws who have been sued repeatedly for trying to collect nonexistent debts. Outlawing robocalls, particularly robocalls to third parties, would hurt the bad actors without having much impact on legitimate collectors. I wouldn't have a problem with live callers using autodialers, except that the technology used by some collection agencies is so far behind the times. Telemarketers are able to stay within the required 3% abandonment rate, yet my experience is that the drop rate on live calls from collectors ranges from 50% to 100%. (Yes, I had one company hang up immediately every single time one of their agents called me. I'm not sure how this is profitable.) Extending the FTC's 3% rule to debt collection calls would address this issue.
View this comment in the discussion thread
sw_in_the_midwest
2
A collector's toll-free number is the ideal number to display on Caller ID, since it allows the call to be returned from anywhere without incurring long-distance charges. It also lets the recipient know right away that it is not a personal call and is probably not from a local company. I'd much rather see an 800 number than a spoofed local number for a company that is really 1000 miles away (or in India). This spoofing is clearly a false and deceptive practice that is barred by the FDCPA, but still it occasionally happens.
View this comment in the discussion thread
sw_in_the_midwest
3
The national database and licensing would be a good idea if it were used effectively to weed out the bad collectors and put them (and their corporate officers) out of business permanently. Not those who get caught up in technical violations over mini-Mirandas, but the ones who knowingly commit serious violations of the FDCPA, FCRA, and TCPA. As Tfleeman noted in his very insightful comment above, the "private policing" we have now has not been effective in stopping the worst abuses. As for the main topic of this page, I think it's far better for a collector to leave a voicemail (with clear identification of the caller and callee) than to call the same number 50 times without leaving a message. The rules should encourage this rather than frustrate it. So, I would favor option #1, with the mini-Miranda deferred until the collector is sure he is talking to the right person.
View this comment in the discussion thread
sw_in_the_midwest
4
Mslade, you have some valid points about the confusing Foti rulings, but I think you are wrong about the TCPA. This law has always applied to debt collectors, politicians, and even charities with respect to cellular phones. And it's not just one judge who has ruled in this way. The FCC and the courts have repeatedly affirmed it. Are you suggesting collectors should be allowed to robocall cell phones of people who don't even owe the debt? What kind of backlash will there be against the collection industry when one of these misdirected robocalls contributes to a car accident or interrupts a senator during a meeting?
View this comment in the discussion thread
sw_in_the_midwest
5
Tiffany, I think part of the problem is that the 2% of collectors who harass and abuse are responsible for a disproportionate share of the contacts that consumers have with your industry. Everyone (whether they owe a debt or not) has had an encounter with one of these bad apples, and then they want to take out their anger on you. And when you make an honest mistake and get sued for a technical violation, you pay the same penalty as a company that has deliberately harassed someone with 100 phone calls.
View this comment in the discussion thread