On September 25, the Federal Trade Commission (FTC) announced it had settled its first case alleging that a debt collector had unlawfully used text messaging while attempting to collect debts. The August 23 complaint alleged that two Glendale, California based debt collection companies violated the Fair Debt Collection Practices Act (FDCPA) and FTC Act by failing to disclose in English- and Spanish-language text messages and phone calls that the companies were debt collectors. The Complaint also alleged that the companies falsely represented themselves as law firms, and improperly revealed debts to third-parties. The companies settled the FTC’s claims by agreeing to pay a $1 million civil penalty and to alter the allegedly unlawful debt collection practices, including agreeing to refrain from contacting people via text without their express consent.
Read More: cnbc.com: "FTC alleges debt collection via text message"
latimes.com: "Collection agency fined $1 million for unlawfully texting debtors"