T-Mobile counsel joined recent ACA Huddle webinar to discuss working with aggregators to help navigate the cellphone carrier’s new code of conduct and its impact on debt collection text messages. Editor’s note: This article is available for members only.
4/12/2021 14:00
ACA International recently learned that T-Mobile’s Code of Conduct prohibits debt collection text messages without an exception. On the March 31 ACA Huddle, T-Mobile’s Principal Corporate Counsel Mark Methenitis reviewed this change and provided guidance about the future of communicating with consumers.
Methenitis explained that the change to the Code of Conduct, implemented in September 2020, was to prevent commercial messages from going to consumers over noncommercial channels; in other words, without being subject to “spam filters” that block possible scam messages.
However, in recent months ACA and member companies like Solutions by Text, which works with clients on building text messaging communication platforms, learned that the update prohibits debt collection text messages (Section 5.2 Disallowed Content), ACA previously reported.
The issue was first discussed during an ACA Huddle webinar in February, where speakers Mike Cantrell, president of Solutions by Text; Amanda Payton, vice president of compliance and risk management at Solutions by Text; Rick Perr, co-managing partner of Kaufman Dolowich Voluck; Leah Dempsey, ACA’s vice president and senior counsel of federal advocacy in Washington, D.C., and Colin Winkler, ACA’s corporate counsel, reviewed the risks of text message blocking, what ACA members can do and how ACA is approaching the issue from a policy standpoint. A recording is available here.
Essentially, the issue comes down to T-Mobile’s decision to not allow text messages between companies in certain industries, including debt collection, and consumers after Sept. 1, 2020.
ACA’s discussion with Methenitis focused on how industries affected by the change can apply for an exception and work with aggregators to facilitate that process.
How Did We Get Here?
T-Mobile noticed commercial messages were being sent over consumer channels and passing through spam filters. Methenitis explained the issue was the route the messages were being sent, not the content of the messages.
Debt collection messages, among other industries, were included in the category to require an exception to keep unscrupulous messages from bad actors from reaching consumers.
What Can ACA Members Do?
Work with a text message aggregator to file an exception with T-Mobile or other cellphone carriers as needed and to ensure messages consumers opt-in to receive are getting through.
Payton also noted that Sprint customers, even after the merger with T-Mobile in 2020, are reportedly not currently impacted by the change in text message allowances.
“In the wireless telecommunications world, text platform providers communicate with wireless carriers via intermediary aggregators,” Payton said. “As was mentioned on the ACA Huddle, Solutions by Text applied for and was granted an exception from T-Mobile/MetroPCS for debt collection use cases. Solutions by Text underwent the exception application process with the assistance of its aggregator, who was responsible for providing requested information to T-Mobile/MetroPCS on Solutions by Text’s behalf.”
Policy Considerations
Companies use SMS short codes, five- or six-digit numbers, to send automated messages to consumers who opt-in.
These messages can contain payment reminders and notifications from debt collectors. Payton said each message, pursuant to current regulations, contains the option for recipients to automatically reply “STOP” to opt-out of receiving messages.
The fact that consumers have opted-in to these messages and that the Consumer Financial Protection Bureau has recognized a consumer preference for this form of communication raises serious public policy concerns, Dempsey said.
ACA’s advocacy team has been meeting with legislators and regulators in Washington, D.C., to discuss the issue and will be leading outreach among many stakeholders.
Remember, in the CFPB’s final rule section on text messages, a debt collector may communicate with a consumer via text message to a given telephone number if it has the consumer’s express or implied consent to do so, ACA previously reported.
If you are currently experiencing text message blocking, email Leah Dempsey at [email protected] to share your information.
A recording of the March 31 ACA Huddle with T-Mobile will be available for members here.