Debt Collectors, Other Businesses Want to Call Your Cell Phone

The Baltimore Sun (09/26/11) Ambrose, Eileen
Debt collection calls to cell phones may soon be allowed, if proposals by the White House and Congress are adopted. Currently, debt collectors can call cell phones if they manually dial the number (they may use auto dialers with the consumers consent), but most businesses typically use automated dialing systems so that they can contact more consumers in a faster time period. President Obama’s proposal, which is a part of his deficit-reduction plan, is to change the law so that people delinquent on a government debt could be contacted by cell phone – a step that could mean “substantial increases in collections.” The other proposal is a bipartisan bill introduced in the House last week that would allow businesses to use auto dialers and recorded messages to reach cell phone users. Consumer advocates have expressed concern that these changes could lead to consumers being bombarded with “nuisance” calls. But supporters say that current regulations have not kept up with technology and the fact that more and more consumers do not have traditional landlines. According to Mark Schiffman of ACA International, current regulations were set based on telemarketing concerns, specifically, preventing consumers from having to pay expensive phone charges for computer-generated call pitches. This is now less of a concern because consumers have flat-rate plans or pay a lot less for cell phone minutes. Additionally, approximately 40 percent of consumers use a cell phone as their primary or only phone, a percentage even higher for consumers in their 20s and 30s, Howard Waltzman, a lawyer representing business groups said. A change in the law could also allow companies to make informational calls to consumers on cell phones – such as alerting them of fraud – while still banning telemarketers and allowing consumers to opt out.