What to Do About Automated Debt Collection Calls
- Automated debt collection uses technology to contact consumers with overdue debts.
- Communication can take the form of automated robocalls, texts, emails, and system-generated alerts.
- These messages indicate that debt collection is underway.
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If you have unpaid debt that’s been sent to collections, you may get robocalls, texts, or alerts from creditors. Automated messages are increasingly automated. Many collection companies use automated debt collection methods to streamline debt collection.
Getting frequent messages about your debt can be overwhelming. Learning how these automated systems work and understanding your rights could help you take control.
We’ll discuss the ins and outs of automated debt collection. Also, we’ll review strategies for handling automated contact and explain your rights. Let’s dive in.
What Is Automated Debt Collection?
Automated debt collection uses technology to contact consumers about past-due accounts. Examples include:
Robocalls
Text messages
Emails
System-generated reminders
Creditors and debt collection agencies can contact more people more efficiently with automation, which helps to streamline the debt collection process.
Automated outreach typically begins once an account is past due. Contact may increase if the account is placed with a third-party collector.
Receiving automated messages doesn’t mean legal action is about to happen. It signals that collection efforts are underway. If you have past-due debt accounts, you may receive automated debt collection messages.
Types of Automated Debt Collection Contact Methods
Collection agencies use a variety of methods to contact people about their past-due debts.
Here are a few ways creditors may use automation to contact you about past-due debts.
Robocalls and pre-recorded messages
Robocalls are automated calls with pre-recorded messages about overdue accounts. These automated voice messages may include callback numbers with payment options.
Automated text messages
Another popular communication method is via text message.
Automated text messages can include:
Reminders about balances
Payment due dates
Links to payment portals
Auto-generated emails
Automated email communication is also common. Automated emails often include templated emails with account information and payment requests.
Payment portal notifications
If you’ve set up online accounts with creditors or collectors, you may receive automated payment portal notifications, which are alerts from online account systems.
Your Rights Under the FDCPA With Automated Contacts
It’s essential to know your rights when it comes to debt collection communication. The Fair Debt Collection Practices Act (FDCPA) prohibits creditors from using abusive, unfair, or deceptive practices when collecting on debts.
The FDCPA outlines rules governing debt collection communications, including automated debt collection contacts.
The following rules apply to third-party debt collectors that reach out manually or automatically:
Must identify themselves as debt collectors in their communications
Are prohibited from calling before 8 a.m. or after 9 p.m. in your time zone
Can’t call more than seven times within seven days about specific debt, or within seven days after speaking with you by phone about that debt
Can’t contact you by email or text message if you ask them to stop
Can’t send you private messages on social media if you ask them to stop
The FDCPA outlines the following consumer rights for debt collection communication. You can:
Opt out of text messages and emails. Collectors must provide an easy way to stop these contacts.
Request verification of a debt in writing, within 30 days of the creditor’s first contact.
How to Respond to Automated Debt Collection Messages
If you can't afford to make payments, you may be wondering how to respond to automated contacts from creditors. Here’s how to navigate automated debt collection messages.
Verify the debt is legitimate
It’s good practice to verify that the debt is legitimate. Review the message and your financial records to confirm that the debt is yours and the amount owed is correct.
Request verification in writing
Next, you’ll want to request verification of the debt in writing. Within 30 days of receiving the message, send a written debt verification letter asking for documentation proving that you owe the debt. This will temporarily halt collection activity until your debt is verified.
Know how to opt out
If you want to limit specific contact, such as text messages, notify the collector in writing. Ask them to please stop communicating with you by that method.
Don't ignore the messages
Don’t ignore automated debt collection messages. Ignoring contact could lead to increased collection efforts and potentially result in legal action.
Being in the know about your debt accounts could help you make more informed decisions. Once you start receiving messages from creditors, it's time to explore your options.
How to Spot Automated Debt Collection Scams
While automated debt collection messages can be legitimate, fraudulent messages are out there.
Scammers often use automated systems to target people. You can protect yourself from fraudsters by knowing how to identify the red flags.
Some signs that you could be dealing with a debt collection scammer are when the so-called collector:
Asks you to repay a debt you don’t recognize
Asks you for information they should already have
Refuses to provide contact information about themselves, their debt collection company, or the total amount that you owe
Demands immediate payment
Pressures you or threatens to have you arrested
Asks for debt repayment in gift cards, wire transfers, or cryptocurrency
If you’re unsure the automated messages are fraudulent, don’t share any personal information or financial details until you've verified the collector. You can contact the original creditor directly to find out whether the messages you received are legit.
When Automated Collection Signals It's Time for Help
Increased or more frequent debt collection communication could indicate a broader debt challenge. It may be time to explore debt relief options, like credit card debt relief.
An option is professional debt settlement. Professional debt relief is a structured option that can help people who can no longer keep up with multiple unsecured debts.
Here’s how debt settlement works:
Debt relief programs replace multiple debt payments with one monthly program deposit.
Experienced debt negotiators work with creditors to reach settlements on enrolled debts.
Once settlements are reached, the debt relief company pays your creditors.
The debt settlement process typically takes two to four years.
You could negotiate your debts on your own. Or you can hire a professional debt settlement company, like Freedom Debt Relief.
If you’re ready to explore your options for debt relief, schedule a free debt evaluation.
Author Information
Written by
Natasha Etzel
Natasha is a contributing writer for Freedom Debt Relief. She is a veteran professional financial writer. She provides realistic strategies to help readers improve their knowledge and change their financial situations.
Reviewed by
Kimberly Rotter
Kimberly Rotter is a financial counselor and consumer credit expert who helps people with average or low incomes discover how to create wealth and opportunities. She’s a veteran writer and editor who has spent more than 30 years creating thousands of hours of educational content in every possible format.
How do debt collectors automate collection efforts?
Debt collectors use technology, including software and AI, to automate debt collection efforts. With these tools, they can automate messaging in several ways: through robocalls, text messages, emails, and system-generated reminders.
How do you know if a debt collector is real or fake?
A legitimate debt collector should be willing and able to give you information about their company, including its mailing address, and information about the debt, and the amount you owe. You may be dealing with a scammer if they refuse to provide this information, demand payment right away, threaten to have you arrested, or ask you to repay your debt via cryptocurrency or gift cards.
What happens if you ignore automated debt collection messages?
Ignoring automated debt collection messages can result in negative consequences. You may be charged additional fees, and your credit and credit score could suffer. If you continue to ignore messages, you may eventually face a lawsuit. It’s best to take action to repay your debt or explore debt relief options.
Can you stop automated debt collection calls and texts?
Yes, federal law gives you the right to ask creditors and collection agencies to stop contacting you. The best way to go about this is to send a cease-and-desist letter asking that they halt communication.