Solutions
by Text Applauds CFPB For Forward-Thinking Proposed Debt Collection Rule
May
13, 2019 — Solutions by Text wants to applaud the Consumer Financial Protection
Bureau in understanding the popularity of communicating via text message and incorporating
that communication channel in its proposed rule implementing the Fair Debt
Collection Practices Act.
The CFPB earlier this week released
its proposed debt collection rule to update and amend the FDCPA, which was
initially enacted in 1977 and, in fact, references telegrams and collect calls.
The FDCPA does not currently include any provision that explicitly governs the
use of digital technologies, such as text messaging and email, despite the
widespread popularity that both channels share among consumers.
Under the proposed rule, debt
collectors would be able to communicate with consumers via text messaging when
following specific steps and taking necessary precautions to ensure consumers
can opt-out from receiving future communications via an electronic channel.
“Solutions by Text is excited with
this new chapter in the evolution of debt collecting,” said Danny Cantrell, the
company’s Chief Executive Officer. “Text messaging is such a common
communication platform and lends itself to giving consumers an easy way to
interact with debt collectors and make payments. We are hopeful that what the
CFPB has proposed this week is ultimately included in a final rule.”
Collection agencies may be more likely
to use digital technology channels like text messaging following a proposal
from the CFPB to limit the number of calls and conversations that collectors
can have with consumers.
“Communicating and making payments via
text messaging allows consumers to take care of business on their own time,
according to their schedule,” Cantrell said. “Consumers don’t have to wait for
a phone call; this proposal gives consumers more power to manage their finances
and allows consumers to conduct business using a communication platform that
sees billions of messages sent every day.”
Solutions by Text is excited at the
prospect of working with the Consumer Financial Protection Bureau as it seeks
to help modernize debt collection and align consumer communication preferences
with compliant processes and procedures.
Solutions by Text (SBT) is a division
of Marketing Response Solutions, LLC, a privately held corporation whose
primary focus is global delivery of critical information in an SMS format. SBT
is a premier partner on the US Short code registry and has developed proprietary
software designed to adhere to regulations within the mobile device industry.
For
more information regarding products and services offered by Solutions by Text you
may contact us at 800- 979-1212 or visiting www.solutionsbytext.com.
PRESS
INQUIRIES
Nada Kassem
V.P. of Compliance and Risk Management