ITMS Text Message Compliance and Best Practices

Please Note

Always consult your compliance or legal team to ensure your messaging aligns with applicable laws and regulations. This guide does not provide legal advice.

This guide outlines best practices for ITMS users. For SBT or other vendors, please refer to their respective compliance documentation.

Text messaging, including SMS and MMS, is a valuable tool for debt collection agencies to engage with consumers. However, non-compliance with legal or carrier guidelines may lead to fines, blocked messages, or consumer complaints.

Compliance and Regulations

Laws governing text messaging frequently change. Regularly audit your practices and consult your compliance or legal team to ensure adherence to federal and state regulations.

General Guidelines

• Consent: Obtain consent from consumers before sending text messages.

• Opt-Out Instructions:  Always include a clear option for consumers to unsubscribe (e.g., "Reply STOP to opt-out").

• Messaging Hours: Send messages during appropriate hours, typically between 9 AM and 8 PM in the consumer's local time.

• Stay Informed: Regularly review federal and state laws governing text communications to keep your practices compliant.

Technical Considerations for SMS and MMS

SMS Technical Considerations

Avoid Non-GSM Characters: Emojis, curly quotes, and special symbols trigger UTF-16 encoding, reducing the standard SMS character limit from 160 to 70. This can lead to message splitting, which increases the cost for the sender.

MMS Technical Considerations

• Media Size Limit: Ensure MMS attachments stay within carrier limits (typically 500 KB to 1 MB) to avoid delivery issues or message splitting.

• Supported File Types: Ensure media files are compatible with the recipient’s device and carrier.

• Non-GSM Characters: Avoid using non-GSM characters (such as emojis and curly quotes) in MMS messages. MMS messages typically support up to 1,600 characters, but using non-GSM characters can reduce this limit and cause message splitting.

• Delivery Time: MMS messages with large media files may take longer to deliver depending on network conditions.

What is Message Splitting?

Message splitting occurs when a message exceeds the character limit:

• For SMS: The character limit is 160 characters for GSM encoding and 70 characters for UTF-16 encoding.

• For MMS: The limit is typically 1,600 characters, but it can be reduced if non-GSM characters (like emojis or curly quotes) are used or if the message size exceeds carrier restrictions.

In both cases, the message may be split into multiple parts. Although the end user receives the message as a single text or MMS, the carrier processes and bills it as multiple messages, resulting in higher costs for the sender.

1. More Efficient SMS Example: "This is a payment reminder from ${customer.companyName}. A payment of $100 is due on [Date]. Pay now at ${debt.virtualAgentLoginUrl}. Reply STOP to unsubscribe. Msg&data rates may apply."

   1. Explanation: This SMS message uses only GSM characters, staying within the 160-character limit, avoiding message splitting or additional costs.

2. More Efficient MMS Example: "This is a payment reminder from ${customer.companyName}. A payment of $100 is due on [Date]. Pay now at ${debt.virtualAgentLoginUrl}. Reply STOP to unsubscribe. Msg&data rates may apply." [Include company logo or relevant image within the size limit]

   1. Explanation: This MMS message stays within the 1,600-character limit, includes an image that adheres to the file size restrictions, and uses only GSM characters, ensuring smooth delivery without splitting or additional costs.

3. Less Efficient SMS Example:  "This is a payment reminder from ${customer.companyName}. A payment of $100 is due on [Date]. Pay now 😊 at ${debt.virtualAgentLoginUrl}. Reply STOP to unsubscribe. Msg&data rates may apply."

   1. Explanation: The emoji (😊) triggers UTF-16 encoding, reducing the SMS character limit to 70. This causes the system to split the message into multiple parts, potentially increasing the cost of sending the message.

4. Less Efficient MMS Example: "This is a payment reminder from ${customer.companyName}. A payment of $100 is due on [Date]. Pay now 😊 at ${debt.virtualAgentLoginUrl}. Reply STOP to unsubscribe. Msg&data rates may apply." [Attached image exceeds the size limit]

   1. Explanation: The emoji (😊) triggers UTF-16 encoding, reducing the character limit for MMS, and the attached image exceeds the file size limit. This combination leads to message splitting and potential delivery issues or delays.

Carrier Requirements for SMS and MMS

Mobile carriers continuously monitor bulk SMS and MMS senders to prevent spam and unsolicited content. Carriers may throttle or block messages if they detect spam-like behavior. Key carrier requirements include:

• Avoid Snowshoe Spamming: Snowshoe spamming refers to sending identical messages across multiple phone numbers to avoid spam filters. Carriers detect this as spam behavior and may block messages or penalize senders.

• Valid Opt-In/Opt-Out Procedures: Ensure consumers have opted in before sending messages, and honor opt-out requests immediately.

Permitted and Prohibited Content in Text Messages

Permitted Content

Text messages sent for debt collection must remain professional and relevant to the consumer’s account status. Examples of compliant content include:

• Opt-In/Opt-Out Messages: Confirm opt-in and opt-out requests.

• Payment Reminders: Notify consumers of upcoming or overdue payments.

• Account Updates: Provide account status updates, such as balance due or payment confirmations.

• Customer Support Links: Provide ways to access the consumer’s account or contact customer service.

Prohibited Content

Certain content is prohibited in debt collection SMS messages to protect consumer privacy, comply with regulations, and avoid triggering spam filters. Avoid including the following:

• Sensitive Personal Information: Never include account numbers, Social Security numbers, or financial details.

  • Example: "Your payment of $100 will be charged to your credit card ending in 1111 for your account #12345678."

  • Why it’s problematic: It contains sensitive personal information.

• Third-Party URL Shorteners: Avoid services like bit.ly, as they are often flagged as spam.

• Aggressive or Harassing Language: Be respectful and avoid coercive language.

  • Example: "If you don’t pay today, we will report your account to the credit bureau immediately."

  • Why it’s problematic: This uses aggressive language, violating the FDCPA.

• Misleading or Deceptive Information: Do not include false claims about debt, legal consequences, or consumer obligations.

• Threatening Legal Action or Arrest: Do not threaten actions that you cannot legally or realistically take, such as arrest or lawsuits without proper process.

  • Example: "Failure to pay within 48 hours will result in immediate legal action and a lawsuit filed against you."

  • Why it’s problematic: The message threatens legal action without indicating a real possibility.

• Unsubstantiated Fees: Never mention fees that are not legally enforceable or specified in the original contract.

  • Example: "Pay now to avoid an additional $150 late fee."

  • Why it’s problematic: The fee was not part of the original agreement, making it unlawful.

• Excessive Messaging: Avoid sending multiple messages in a short time, which can be perceived as harassment.

• Third-Party Disclosure: Never disclose a consumer’s debt to third parties in any message.

• Inappropriate or Offensive Language: Maintain a professional tone and avoid disrespectful or abusive language.

Best Practices for Message Content

• Keep It Short: Stick to one point per message. For SMS, keep it under 160 characters to avoid splitting. For MMS, even with more space (up to 1,600 characters), keep the message clear and concise.

• Include Opt-Out Instructions: Always provide consumers with a clear way to opt out of receiving future messages. Use a uniform opt-out phrase: "Reply STOP to unsubscribe."

• Avoid Cross-Channel Fatigue: Avoid sending identical messages across multiple channels (SMS, email, voice) at the same time. This may overwhelm consumers and lead to higher opt-out rates. Space out communications and ensure each channel delivers unique content when possible.

Sample Best Practice Message

Here are examples of best practice messages for opt-ins, payment reminders, and welcome texts.

• Best Practice Opt-In Message: "Text YES to receive payment reminders and account updates from ${customer.companyName}. Msg & data rates may apply. Reply HELP for help, Reply STOP to unsubscribe."

  • Explanation: This message requests consent, states the purpose of the messages, mentions standard data rates, and provides simple opt-out and help options.

• Best Practice Example Payment Reminder: "This is a payment reminder from ${customer.companyName}. A payment of $100 is due on [Date]. Pay now at ${debt.virtualAgentLoginUrl}. Reply STOP to unsubscribe. Msg&data rates may apply."

  • Explanation: This message clearly reminds the consumer of a payment due, provides a link for immediate action, mentions standard messaging/data rates, and includes a simple opt-out option.

• Best Practice Example Welcome Text: "Welcome! ${customer.companyName} is here to help with your account. Access your account at ${debt.virtualAgentLoginUrl}. Reply HELP for assistance or STOP to unsubscribe."

  • Explanation: This message introduces the agency in a friendly tone, provides a link to access the account, mentions standard messaging/data rates, and offers simple "HELP" and "STOP" options for assistance or opting out.

Best Practices for Message Frequency and Timing

• FDCPA and TCPA Restrictions: Limit message frequency to avoid violating FDCPA and TCPA regulations, and prevent overwhelming consumers.

• Time Zone Considerations: Send messages between 9 AM and 8 PM in the consumer’s local time zone to comply with TCPA.

Workflow Considerations

A well-structured workflow ensures proper handling of opt-ins, opt-outs, help requests, and payment reminders. Here’s a breakdown:

Opt-Out Workflow

The opt-out process using ITMS is managed automatically by ACE. Here’s how it works:

• Automatic Opt-Out Confirmation: When a consumer sends an opt-out keyword (e.g., "STOP"), ACE sends a confirmation message:

  “You are unsubscribed from ${customer.companyName} msgs. Reply SIGNUP to subscribe again.”

• Automatic System Update: ACE updates the consumer’s record to mark the phone number as opted out, applying the opt-out status to all accounts associated with the number.

• Custom Workflow Using Triggers: Use the onAfterTextOptOut trigger for custom actions, such as adding accounts to a worklist for review. However, don’t replicate the opt-out handling—ACE manages this efficiently.

• Important Consideration:  Opt-outs apply only to SMS and do not affect other communication channels (e.g., phone calls).

For more details on supported keywords and variations, refer to Opting Out in ITMS.

Opt-In Workflow

You can offer multiple compliant methods for opt-in using ITMS and VA 2.0:

1. Agent-Initiated Opt-In: Agents can send an opt-in request text by opening the phone demographic record and clicking "Send Opt In Request."

2. Quick Opt-In: The agent selects the "Quick Opt-In" option in the consumer's profile.

3. VA 2.0 Opt-In: Consumers can automatically opt in when they update their phone number in VA 2.0.

Help Request Workflow

When a consumer replies "HELP" to an SMS, ACE automatically sends the following response:

"For assistance, call ${customer.companyName} at ${customer.phone} or visit ${debt.virtualAgentLoginUrl}. Reply STOP to unsubscribe."

This automated response ensures fast support without manual intervention, enhancing efficiency and compliance.

Payment Reminder Workflow

Payment reminders help ensure timely payments. The below is a best practice payment reminder message:

"This is a payment reminder from ${customer.companyName}. A payment of $100 is due on [Date]. Pay now at ${debt.virtualAgentLoginUrl}. Reply STOP to unsubscribe. Msg&data rates may apply."

Suggested Delivery Schedule:

• 3 Days Before the Due Date

• 1 Day Before the Due Date

• On the Due Date

• After Missed Payment: Follow up at 1, 3, and 7 days after the due date.

Tip: Use the Information category for payment reminder messages. This will ensure the reminders are not counted toward the Maximum Contact Attempts limit.

For more information on sending payment reminders, review Contact Method for Payment Notifications.

Note on Payment Reminder Frequency

Payment reminders are typically considered essential communications in debt collection and are permitted as long as consumers have opted in. Use reasonable schedules (e.g., 1, 3, and 7 days after the due date) and avoid overwhelming consumers.

Always consult your compliance team to ensure the schedule aligns with current regulations.

Best Practices Checklist

Compliance and Message Content

✅ Consult: Always Consult with your legal/compliance team.

✅ Explicit Consent: Always obtain explicit opt-in consent before sending messages.

✅ Clear Opt-Out Options: Ensure all messages contain a clear opt-out option (e.g., STOP, UNSUBSCRIBE).

✅ Avoid Prohibited Content: Do not include sensitive information (e.g., account numbers), third-party shorteners, or aggressive language.

✅ MMS Use: Use MMS sparingly due to higher costs, and follow carrier requirements.

Technical Requirements

✅ Avoid Non-GSM Characters: Stick to GSM characters to prevent message splitting and encoding issues.

✅ Message Frequency: Limit to no more than three messages per week unless critical.

✅ Time Zone Compliance: Send messages between 9 AM and 8 PM in the consumer's time zone.