No, we are not aware of any Illinois or federal laws that would restrict your ability to conduct debt collection efforts through text messaging. The Illinois Consumer Fraud and Deceptive Business Practices Act restricts some collection practices, such as collecting a debt from a debtor’s spouse, but those restrictions apply regardless of the medium of the debt collection effort, whether “by mail, telephone, personal contact, court action or by any other means.” In addition, we note that the federal Fair Debt Collection Practices Act does not apply to a bank if it is collecting its own debts, provided that you are collecting the debt in the bank’s own name.

However, keep in mind that any practices that violate the FDCPA, such as texting customers at unusual times (before 8:00 a.m. or after 9:00 p.m.), would very likely be frowned upon by your examiners. You also should consider that text messages sent by bank employees will be more difficult to monitor and store than emails, particularly if bankers are sending text messages to your customers from their personal devices.

For resources related to our guidance, please see below:

• Consumer Fraud and Deceptive Business Practices Act — 815 ILCS 505/2H (limitations on collecting a debt from the debtor’s spouse)

• Fair Debt Collection Practices Act — 15 USC 1692a(6) (definition of “debt collector,” which does not apply to persons who are collecting their own debts in their own names)

• FDIC Compliance Manual, Fair Debt Collection Practices, page one/VII-3.1 (explaining the scope of the FDCPA and when it might apply to a financial institution)