Business Loan Factoring, the practice of advancing cash on the basis of accounts receivable, has grown 175% per year while bank loans have declined 3%. This has led to some aggressive Business to Business call solicitations by Internet Business Loan Companies. Consumer Factoring, buying annuities for cash based on fixed settlement payments, are already being hit by the TCPA. On July 21'st, 2015 Novation Capital, a structured settlement purchaser in West Palm Beach, Fl, had a class action brought against them for suspected violations. The Factoring Ethics blog featuring industry expert Sean Bentzen, Bentzen Financial says: “We are not at all surprised that a suit of this kind finally happened. We’re just surprised it took this long!”
Internet Factoring and Business loans seem particularly susceptible to the Do Not Call and TCPA. Many of these companies aren’t’ familiar with the laws or have cast them aside. And to knowingly violate the Telephone Consumer Protection Act is “a kind of gambling” continues Sean. Industry reporter Structured Settlement Watchdog chimes in: "The lawsuit represents yet another battle starting in the structured settlement buy mosh pit."
Why can't I just call my Business Factoring leads without TCPA protection
You would think it’s O.K. to call trucking companies, freight brokers, oil and gas companies, staffing folks – small to medium sized business in general. But the FTC reiterated last month at the P.A.C.E Washington Summit it expects B2B’s to comply with the Do Not Call and TCPA Laws. And social media sourced lists to contact key company players from Linked-in and Twitter are littered with cell phones – where the big class action certification money is. See our blog, The 5 Risks of using Social Media Source Lists for Sales Calls.
The Big Compliance Difference between Business and Consumer Factoring.
Consumer Factoring Companies have a reputation for rampant disregard for the Do Not Call and TCPA Laws. Their business model has required cold calling cell phones repeatedly in many cases, making it difficult to comply. However, more recently, Business Factoring Companies have also come under the scrutiny of the TCPA. But because these Business Factors would rather eliminate cells altogether in favor of landlines, it's easier to comply. They can also register for Free with the National List, and stay on the road to compliance without much number fallout.
What is a Litigator Scrub?
A list of former TCPA and related litigants. They are the experts at TCPA manipulation. They’ll set compliance traps for unsuspecting business to business callers. Like filling out your internet lead forms with cell numbers, only to have you call back using an automated telephone dialing system. Call forwarding schemes designed to ensnare fast moving financial services companies.
This video is for informational purposes. Be sure to consult your own attorney for questions specific to your business.
How can a Litigator Scrub help?
A Litigator Scrub allows alternative financial solution companies a leg up on TCPA compliance. Before calling, businesses identify or “scrub” against the 85,000 or so known TCPA previous litigants. So all phone numbers: wireless, VoIP, landlines – any number associated with previous Do Not Call, TCPA, FDCPA, FCRA or related suits doesn’t get called at all. The list is also small enough to allow most numbers on your calling lists to stay there. Previous TCPA litigants tend to hang together. A whole community of folks schooled in tripping up the TCPA and related laws in their favor.
How do I employ a Litigator Scrub?
Litigator Scrubs in the Do Not Call and TCPA arena are fairly new. Talk with your Certified Do Not Call Law Compliance Service Provider about eliminating these hooligans through your already successful call prohibition procedures. It should be a filter you can simply turn on and off with your service. We recommend sourcing a Previous Litigant List from your current solutions provider - as a single TCPA compliance source works best should problems occur down the road. No vendor blame game!
What else can I do to protect against the DNC & TCPA Laws?
You can register for the National Do Not Call Registry as a Business to Business exception for free. www.telemarketing.donotcall.gov. And include a wireless block cell scrubbing filter from your service provider also. Whether you call cell phones or not, it’s the first question the Consumer Protection Financial Bureau will ask should they choose to audit you: “Where are your cells”. A service provider can help with State "Mini-TCPA's" too.
You can also scrub against VoIP. The small number of lines on which the recipient pays for the call. Thus falling under the TCPA’s “or any call for which the receiving party pays,” rule. VoIP lines will register as landlines on a standard scrub.
In Summary:
A little compliance effort on Internet Factoring calls goes a long way with the TCPA. Most Business Loan Companies in court don't have any protections in place at all. Hey, this is a proactive gig. You can’t tell the CFPB about your cell scrubbing system if you’re not even identifying them!
The good news: If you're B2B, you can use a lot of these preventative call prohibition procedures without losing many numbers. You're looking for other businesses, so landlines are the ticket here. If you're B2C, whether you call cells or not, you better have them scrubbed, archived and available in the timeframe and format Government agencies want them, along with DNC National and State list scrubs - or it's not going to go well when the Consumer Financial Protection Bureau comes calling with their latest interpretation of the TCPA.
In either case, a Litigator Scrub is a good start - a good first line of defense against these laws. And keep in mind: A Business that puts their phone number on any National or State DNC list probably isn't going to buy anything, and will have a higher propensity to complain!
For more on TCPA Protections for Factoring and Internet Business Financing, call me at 561-317-3001 - Bob
Related Articles:
Litigator Scrub critical to TCPA FDCPA Compliance after FCC Declaratory Ruling
I only call other businesses. So I'm exempt from the Cell Phone Compliance, Right?
Everything you need to know about VoIP Scrubbing
B2B Marketers Should Register for the National Do Not Call List for FREE
