AI and Debt Collection: The New Frontier

Debt collectors are increasingly using Artificial Intelligence (AI) and chatbots to interact with consumers. While technology can be efficient, it often crosses the line into harassment and deception.

The Rules Still Apply

An AI bot is an agent of the debt collector. It must follow the same laws as a human collector:

1. Disclosure: It must identify itself as a debt collector attempting to collect a debt.
2. No Harassment: It cannot bombard you with texts or messages at unreasonable hours (before 8 AM or after 9 PM).
3. Revocation: If you reply “STOP,” the bot must stop.

The “Faux-Human” Deception

If an AI bot attempts to pass itself off as a human (e.g., “Hi, this is Sarah, I’m just looking at your file...”), this may be a deceptive practice under the FDCPA. Consumers have a right to know they are interacting with an algorithm, not a person.

Frequency Limits

The CFPB’s “7-in-7” rule applies to calls (7 calls in 7 days). While the strict rule for texts is evolving, excessive texting that is designed to annoy or harass is a violation.

What to Do

If you suspect you are being harassed by a bot:

1. Save Screenshots: Document every text and timestamp.
2. Opt-Out: Reply “STOP” clearly.
3. Litigate: If the messages continue after you opted out, or if the bot used deceptive tactics to trick you into paying, you may have a claim for statutory damages.