Collections contact compliance refers to the structured adherence to federal, state, and institutional rules that govern how and when debt collectors may communicate with consumers. It is not only about what is said in a debt collection interaction but also about the frequency, timing, and method of contact.

Organizations involved in consumer collections must implement procedures and systems that align with FDCPA compliance, TCPA restrictions, and other regulatory frameworks. These measures ensure that each point of contact, whether through phone, email, text message, or voicemail, remains within legal and ethical boundaries.

As regulatory enforcement continues to evolve, failure to follow debt collection compliance protocols can result in penalties, litigation, and reputational damage. A sound contact compliance strategy is essential for both risk mitigation and operational integrity.

Laws Regulating Collections Compliance and Debt Collection Communications

Several laws regulate collections contact compliance, including the Fair Debt Collection Practices Act (FDCPA), the Telephone Consumer Protection Act (TCPA), the Consumer Financial Protection Bureau (CFPB), and various state-level regulations.

The Fair Debt Collection Practices Act (FDCPA): Core of FDCPA Compliance

The Fair Debt Collection Practices Act (FDCPA) is the foundation of FDCPA compliance, outlining strict rules for consumer communication during debt collection. It is the primary federal law governing debt collection communications practices. It includes specific rules that regulate telemarketing collections and call centers, such as:

• Contacting consumers: Debt collectors are generally prohibited from contacting individuals before 8 a.m. or after 9 p.m. They must also respect requests to avoid contacting consumers at specific places, such as their workplace.
• Social media and electronic communications: Debt collectors are forbidden from publicly posting about a consumer’s debt on social media, but private messaging is allowed unless the consumer opts out. Emails, SMS messages, and other electronic communications must include a simple opt-out method, aligning with state TCPA compliance rules.
• Harassment: Debt collectors cannot harass consumers by calling excessively. Under the FDCPA, collectors are limited to seven calls within a seven-day period, or within seven days after engaging in a telephone conversation with you about the particular debt.
• Attorney representation: If a consumer is represented by an attorney, debt collectors must contact the attorney, not the consumer directly.

Consumers can recover damages of up to $1,000 plus legal fees under the FDCPA, with class action lawsuits potentially resulting in up to $500,000 or 1% of the debt collector’s net worth (whichever is less) to be divided among the plaintiffs.

Telephone Consumer Protection Act

The Telephone Consumer Protection Act (TCPA), enacted in 1991, regulates telemarketing calls and text messages to protect consumers from being bombarded with unsolicited and prerecorded messages. The TCPA governs the use of automated telephone dialing systems (ATDS) and requires adherence to Do Not Call (DNC) lists. Violations of the TCPA can result in:

• $500 per violation 
• 1,500 per call or text if it is proven the violation was willful

Beyond ATDS restrictions and DNC compliance, the TCPA includes rules on wireless communication, the Reassigned Numbers Database (RND), call curfews, express written consent, and call frequency limits. These rules vary by state, requiring businesses to understand state TCPA compliance laws to avoid costly fines. Together with the FDCPA, the TCPA forms the basis for modern debt collection compliance. Organizations must implement systems to ensure that all call attempts comply with these restrictions.

Consumer Financial Protection Bureau

The Consumer Financial Protection Bureau (CFPB) enforces federal consumer financial laws to protect consumers from unfair, deceptive, or abusive debt collection practices. The CFPB oversees compliance for banks, non-bank mortgage companies, payday lenders, and private education lenders. Collections contact compliance for third party vendors also falls under the CFPB’s jurisdiction. The CFPB’s focus on transparency and consumer control reinforces the need for real-time compliance automation for debt collection processes.

State-Level Regulations

In addition to federal laws like the FDCPA and TCPA, many states have their own collections compliance rules. For example, certain states impose specific call frequency limits and restrictions on contacting consumers at work. Some states with stricter regulations include Massachusetts, New York City, District of Columbia, New Hampshire, South Carolina, Washington, and West Virginia. 

Understanding both federal and state TCPA compliance is critical to avoid violations when conducting outreach across different states.

Collections Compliance for Third-Party Vendors

Another important factor in debt collection compliance is ensuring that third-party vendors, such as call centers and those involved in Business Process Outsourcing (BPO), also adhere to compliance laws. While BPOs may believe the company they represent is responsible for maintaining compliance, they can still be held liable for FDCPA, TCPA, or DNC violations.

To mitigate risks, organizations must prioritize collections contact compliance for both internal operations and third-party vendors.

Collections Compliance Checklist

Every consumer debt collection interaction holds the potential for costly fines or lawsuits. With penalties ranging from $500 to $1,500 per dial, organizations face significant risks.  

Check out our Collections Compliance Checklist for a comprehensive rollup of what you need to know to stay compliant.

Gryph for Collections

Gryph for Collections helps enterprises to proactively eliminate the risks associated with Telephone Consumer Protection Act (TCPA), Consumer Financial Protection Bureau (CFPB), Fair Debt Collection Practices Act (FDCPA), and state TCPA compliance by blocking non-compliant calls before they happen. Our automated, real-time solution helps first- and third-party debt collections organizations stay compliant with ever-changing regulations.

Contact Gryphon today for an exclusive demo of Gryph for Collections.

Advanced Contact Compliance: Going Beyond the TCPA and DNC Basics

For those in  compliance roles, it’s important to go beyond the basics of the Telephone Consumer Protection Act (TCPA) and Do Not Call (DNC) regulations. The complex nature of collections contact compliance demands an understanding of call curfews, frequency limits, and state-level compliance laws.

Check out our new guide on advanced contact compliance to help your organization avoid fines, loss of consumer trust, and legal action.