TCPA cases targeting collectors swell

The number of cases being brought against collectors under the Fair Debt Collection Practices Act (FDCPA) seems to be declining, according to insideARM. Claims against the recovery sector under the FCDPA are expected to drop by approximately 11 percent in 2012 compared to last year's data. At the same time, the source states that suits under the Telephone Consumer Privacy Act (TCPA) are projected to rise by more than 60 percent by the end of the year. This data is alarming for debt collectors and suggests that firms should target compliance during worker training initiatives. The TCPA regulates the usage of automatic dialing machines, but also establishes consumer privacy from unsolicited phone calls or faxes. Customers need to sign up for promotional lists, and there must be a clearly stated business relationship between firms and clients. Debt collection agencies should be aware of the definitions and implications of the TCPA. The suits brought under this act may lead to more lucrative settlements, which may explain the rise. Agencies should implement proper training strategies and ensure that communication practices remain compliant, whether via telephone or the electronic environment. Further, firms might consider the implications of this act as it may be revisited in the coming year to reflect new technologies such as smartphones or internet faxing. Preparation is key on all fronts when it comes to consumer data management.