No Phone? No Problem For Debt Collectors

BROADCAST HOUSE, Mich. (WXYZ) - In this economy, more and more people are falling behind on their bills, and the debt collectors are finding new ways to make sure they know they're still expected to pay up. 

HEATHER CATALLO HAS THE DETAILS IN THE VIDEO PLAYER ON THE RIGHT

Heather's Script

The days of just trying to avoid collection calls at your home are long gone because debt collection is going high tech.

Log on to your computer, or check your cell phone, and you may have a message waiting for you if you're overdue on a bill or two. Creditors and debt collection agencies are using new methods to remind you they're waiting!

Ken Paterson, Mercator Advisory Group
"The lender really has to pursue multiple channels to get in touch."

Not sure you like the idea of a debt collector getting ahold of you on your email account, or through a text message?

Beth Givens, Privacy Rights Clearinghouse
"Many people are giving up their land line and going with a cell phone but many of them are still paying for text messages or calls so they may not want the debt collector to reach them in that way."

Still, it's perfectly legal, according to the Federal Trade Commission and consumer advocates.

Beth Givens, Privacy Rights Clearinghouse
"The minute you put that phone number on a credit card application you are saying, 'I consent to have you call me.'"

But creditors still have to follow the rules of the Fair Debt Collection Practices Act.

Beth Givens, Privacy Rights Clearinghouse
"Federal law does place some restrictions where you can't be phoned at 7am or 10pm or the middle of the night."

The lenders say they consider high tech reminders a service to consumers and even the Privacy Rights Clearinghouse claims some people may prefer this method.

Beth Givens, Privacy Rights Clearinghouse
"There are people who would just as soon have these sorts of communication by text message or email. They don't want to talk to a human being, it takes up their time."

What if you're not one of them? Let the debt collector know-in writing!

Beth Givens, Privacy Rights Clearinghouse
"It's not enough to just talk into the phone and say, 'Don't ever call me on my cell phone again, just contact me by postal mail.' You have to send them a letter and tell them that."
 
Then by law, they have to stop.  But like it or not, marketing researcher Ken Paterson says this new high tech debt collection won't be going away any time soon-in fact, you can expect it to increase in this economy.

Ken Paterson, Mercator Advisory Group
"Our research tells us that many are seriously considering implementing it in the very near future."

The rules that allow automated debt collection calls do differ slightly.

As court rulings currently stand, cell phone numbers cannot be used for those calls.

There is an upside to high tech debt collection – through e-mail, you can sometimes negotiate payments online.