Dials, Contacts, and the Difference: Collection Calls to Consumers

The Fair Debt Collection Practices Act can be frustrating around the topic of collection calls. It’s very clear on what constitutes “harassment or abuse,” but remains coy about how that relates to attempts, dials, and contacts.

15 U.S. Code § 1692d – Harassment or abuse

A debt collector may not engage in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of a debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

(5) Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number.

So, let’s break some terms down:

Dials: These are attempts at contacts. You have caused the consumer’s phone to ring or it is apparent, per caller ID, that you have made an attempt. A dial may lead to a contact, but in and of itself, is not considered one. As Rossman suggests, “I always start a conversation on call volume at three dials or attempts a day.”

Contacts: If someone answers one of your dials, or if you leave a voicemail message – the collector or a pre-recorded message – that is a contact.

Much has changed the technological landscape from the early days of the FDCPA to today. In 1978, we didn’t have cell phones or caller ID. The consumer could either sit there and listen to the ring on the phone and not answer it, or he might be compelled to take it off the line and let the person hear a busy signal. Either way, consumers were aware that the call was being made at the time. “If they were out three times a day, morning, noon and night, walking their dog,” Ron Canter of The Law Offices of Ronald S. Canter, LLC, shared in a Call Volume webinar, “and if the collector called three times each day at the same time they were walking the dog, they would never have known back then that that the collector was making any calls. Now, they do.”

The best practice, compliance-wise, might be to limit yourself to three dials a day per consumer. Not per consumer line — which could lead to nine dials a day if a consumer has a home landline, a cell phone, and a work number on file. That can, in the eyes of a consumer-sympathetic judge, be a violation of d(5). We’ve put together a handy chart that suggests how dials and contacts should be handled.

DIAL –> VERBAL CONTACT: Establishing actual contact with a consumer allows the collector to either accept payment in full – in which case that is the only contact needed – or to make payment arrangements. When making payment arrangements, lines of communication need to be left open; however, if the consumer is regularly making payments on his delinquent account, then there is no need for continual phone calls. If there is an interruption in those calls, then the best practice would be to begin your contact series again – with the “three attempts per day” in mind.

Of course, a consumer can also, at this point, tell the collector that he has no intent to pay. The consumer can also tell the collector that this number is not a good number to call. Any communication from the consumer about his inability to pay should be documented thoroughly in the consumer’s file. If he has demanded not to be contacted, that number should be removed and next steps with those kinds of consumers should begin.

DIAL –> MESSAGE or VOICEMAIL: A reasonable amount of time must be built in to allow the consumer the chance to return the call. Best practice might suggest that three days to one week separate a voicemail message and continued attempts after the message.

DIAL –> NO CONTACT: Proceed with the best practice in mind of “three attempts per consumer per day.” Bear in mind the state laws of where the consumer is residing.

Additional insight into collection call compliance is available in our Research Library with two new products:

UPDATED: To the Point Collection Call Compliance: This has been updated with the above information, as well as a chart detailing one- and all-party collection call recording consent.

Operations Guide: Call Volume: Our Operations Guide offers clarity, insight, and best practices around call volume/frequency. It looks at: Special Case States, which have additional laws around call attempts; what the difference is between an Attempt and a Contact; how call recording, when allowed, can save your bacon; and a look at recent cases the involve call volume and what insight collection agencies can glean from them.