The Do Not Call Registry: Can It Stop Creditor Calls?

Last week I wrote about creditors that text collections messages to debtors’ cell phones.  We had a question from a reader about the legality of creditors using cell phones in light of the federal Do Not Call Registry. Specifically, if you place your cell phone on the Registry, are creditors prohibited from calling you?

The short answer is “no.”

Handling calls from creditors

When the National Do Not Call Registry was established it didn’t include any of the following:

• Calls from businesses that you already have a relationship with
• Calls for which you’ve already given written permission
• Calls that aren’t commercial and don’t include unsolicited advertisements
• Calls made by or on behalf of non-profit organizations

I know of no lenders or credit card companies that extend credit without the debtor granting permission for the creditor to use a third-party collector to collect any delinquent debt . So, ultimately, you gave permission for the collectors to call you when you got your loan or credit card. This means signing up for the national do not call list won’t stop calls from debt collectors.

Cease and desist

If you wish to stop debt collector calls, you should send a written cease and desist letter to the collector stating that you no longer wish to be contacted. Aside from paying the debt, or hiring an attorney to assist you, that’s the only way to try to get a debt collector to stop calling you.

Under both the federal and North Carolina versions of the Fair Debt Collections Practices Act (FDCPA), once a debtor has informed a creditor/collector that they do not wish to be contacted about a debt (by sending what’s commonly known as “cease and desist letter”), the creditor/collector may not continue to contact the debtor unless it’s to tell the debtor that some specific action is going to be taken.

Sometimes these work, sometimes they don’t.  Violations of FDCPA do not constitute a defense to a valid debt owed, but they can be brought by way of counterclaim for separate damages, which are minimal (often just $1000.00 plus attorney’s fees).

If you are struggling to pay your debts, call a qualified bankruptcy attorney for a credit card counseling session or bankruptcy evaluation. Cease and desist letters are often band-aids for financial circumstances that require expertise.