Updated on
Author: Sergei Lemberg
What Are Debt Collection Opt-Out Notices?
![Debt Collection Opt Out Notices]()
General Answer: A Debt Collection Opt-Out Notice instructs consumers on how to stop receiving certain electronic communications.
If you have a debt with a collection agency, they are free to contact you. Popular forms of communication include written letters and phone calls. However, a debt collector may contact you in other ways, including electronic communication.
However, there are rules in place for how a debt collector may communicate with you. The Fair Debt Collection Practices Act (FDCPA) provides these rules. This law regulates, among other things, when and how a debt collector can communicate with you.
As part of this law, debt collectors must give consumers the option to opt out of certain communications. In this article, you will learn about the FDCPA’s requirement for opt-out notices with electronic communications. If a debt collector does not honor your request, there are ways to hold the collection agency liable for their violations.
What are the Requirements of a Debt Collection Opt-Out Notice?
Under the FDCPA, a collection agency must provide an opt-out notice whenever they send an electronic communication. This includes an email, text message sent to your cell phone and any other type of electronic communication. Here are some of the basics about the opt-out notice:
- Clarity. A collection agency must send this message in a clear and simple manner. Legal or other jargon is a violation of the FDCPA. For example, an acceptable opt-out notice for a text message is as follows: Reply STOP to no longer receive text messages at this telephone number.
- No Fee. A debt collector cannot charge a fee to opt out of electronic communications.
- Cannot Request Supplemental Information. A collection agency’s opt-out notice cannot request unnecessary information to end the electronic communication. The only information a debt collector can request is your opt-out preferences. This includes the phone number or email address where you no longer want to receive electronic communication.
When you opt out of electronic communications, debt collectors cannot rely on minor errors. Your response does not have to match the debt collector’s instructions perfectly to be valid.
Note: The opt-out notice is a requirement of the FDCPA. This means that this requirement only applies to third-party debt collectors, not the original creditor.
The FDCPA and Communication Requirements
Like other aspects of the FDCPA, the purpose of the opt-out notice is to regulate the communication process. By doing so, the FDCPA provides another way to prevent harassment from a collection agency.
The reason for this is that the most common offense by debt collectors involves their communication when collecting a debt. Debt collectors have a reputation for harassing consumers by contacting them repeatedly over a short period of time. The opt-out notice gives consumers the ability to quickly and simply end electronic communications with a collection agency.
What if a Debt Collector Keeps Sending Me Electronic Communications?
If a debt collector continues to send you electronic communications after opting out, they violate the FDCPA. They are also in violation if they never send an opt-out notice. For either reason (and other FDCPA violations) you can take the following action:
| Action |
Specific Steps to Take |
| Send Them a Cease-and-Desist Letter |
If opting out is not working, consider sending a cease-and-desist letter via certified mail. A debt collector’s response to this letter should be to end all communication. |
| Notify a Federal Agency of the Violation |
A consumer can report FDCPA violations to the Federal Trade Commission (FTC). You may receive additional assistance by submitting a complaint to the Consumer Financial Protection Bureau (CFPB). |
| File an FDCPA Lawsuit |
This option is often reserved for situations where the illegal behavior is ongoing. It is also an option if you suffer any kind of damage. |
| Discuss Settlement Options |
This is a different approach for those looking to settle a larger debt. If you agree to not file a lawsuit they may offer you favorable settlement terms. |
What if you are receiving these communications and the debt is not yours? In addition to the above, make sure you dispute the debt in writing.
Conclusion
You have a right to limit different types of communication from a collection agency. If you do not want to receive electronic communications, you have the right to opt-out.
If a debt collector continues to contact you electronically after opting out, they have violated your rights under the FDCPA. Consider the above options to stop this violation of the FDCPA. Of course, you can always request the assistance of an FDCPA attorney. They can ensure all debt collector violations are properly resolved.
Additional Resources
About the author:
Sergei Lemberg is a consumer rights attorney, practicing since 2006, whose practice focuses on consumer law, class actions and personal injury litigation. He is known for a United States Supreme Court case (Facebook v. Duguid) defending consumers from autodialers under the Telephone Consumer Protection Act of 1991 to send unsolicited text messages. He is also the author of Defanging Debt Collectors, a book that teaches consumers how to battle debt collectors and win.
See more posts from Sergei Lemberg