A couple years ago, New York bankruptcy lawyers discovered debt collectors on social media. In that medium, they seek out debtors who have moved or changed their contact information. Even more recently, according to a NerdWallet article, it appears debt collectors are using other advances in communications technology to target borrowers while avoiding the Telephone Consumer Protection Act (TCPA) and the Fair Debt Collection Practices Act (FDCPA).
One technique debt collectors use is called, “spoofing.” Debt collectors know that borrowers aren’t likely to answer calls from distant area codes, so they use machines that change their area codes to local ones on debtors’ caller ID displays. This activity is illegal under the Truth in Caller ID Act, but that isn’t stopping some collectors.
Another technological trick debt collectors now use is voicemail drops that don’t cause the borrower’s phone to ring at all. Debt collection companies argue that these messages aren’t actually phone calls, so they don’t trigger any of the rules stemming from the TCPA or FDCPA, including those prohibiting collectors from using auto dialers. Nevertheless, debt collectors assert that these silent voicemails are highly effective at motivating debtors to contact them to repay their debts.
Debt collectors are also adopting speech-recognition software to monitor their calls to borrowers. The software informs the debt collector’s calling employee about the respondent’s emotional state, like whether the borrower is angry. As a result, it can then present the caller with recommendations as to how to negotiate with the borrower in a way that is more likely to promote repayment.
In fact, debt collectors are also apparently getting rid of the human caller altogether. Rather than using phones, some debt collectors are shifting to email. Specifically, they send emails with an image of a cartoon person that contains an embedded link to a “virtual assistant” that gently persuades borrowers into repaying their loans. Again, the sweet-talking assistants in the emails are much more effective than intrusive live callers.
The NerdWallet article is here.
Although some of these activities are clearly illegal, particularly the call spoofing, the rest fall into a gray area. As discussed in the post on debt collectors and social networks, the FDCPA applies to all forms of communication and not just telephones. That means that the “virtual assistants” in emails must comply as well. However, to some degree the technology is changing the nature of the communications used by the debt-collection industry. It’s still debt collecting if it’s done by email, but if it’s much more innocuous than a 3 a.m. phone call on a landline to a neighbor, then some of the harassing aspect disappears.
All that being said, it’s still a bad idea to click on links appearing on emails from strangers, but more importantly if a debt collector is reaching out to you then you should consider discussing your case with an experienced New York bankruptcy lawyer to explore your options.
For answers to more questions about bankruptcy, the automatic stay, effective strategies for dealing with foreclosure, and protecting your assets in bankruptcy please feel free to contact experienced Brooklyn bankruptcy attorney Bruce Weiner for a free initial consultation.
