Page 54 - Microsoft Word - NEW 2017 Standard Program.docx

In Section 1039(c) there is further prohibition against the sale of “confidential phone
records information,” which states that an individual who knowingly and intentionally
sells or transfers such confidential phone records of a covered party without prior written
permission from the customer from whom such confidential information was obtained
fraudulently, shall be fined under this Act, imprisoned not more than 10 years, or both.

Under the same section, the Act prohibits the purchase of confidential phone records
information and imposes the same penalties.

The Act also provides for enhanced penalties for “Aggravated Cases.” These are
instances where the individual violates the Act while violating another federal law. In
such cases, the violator may be fined twice the amount as provided in the Act and may be
imprisoned for an additional five years.

Although state laws vary considerably regarding pre-texting, the federal Act has led
most lending institutions to make the prohibition of pre-texting of any nature a part
of their contracts with skip-tracers or Recovery Agents.

To expand upon pretexting as it applies to collateral recovery and/or skip-tracing
one must also recognize that this includes any written form. Providing misleading
statements via email, phone text, Internet, U.S. mail or fax is also considered pre-
texting and is strictly prohibited. Since you would be knowingly providing false or
misleading statements in an attempt to secure the collateral, one could easily argue
that you are violating the Fair Debt Collections Privacy Act (FDCPA).

The Telephone Records Act makes it a federal crime to fraudulently obtain consumers’
“confidential phone records information.” Although there is some ambiguity in that
term, it is clear that confidential phone records information includes a third party’s call
history, including the numbers called, and the time and length of the call. The Act’s
language also makes it clear that confidential phone records information is not
“subscriber list information” such as an individual’s name, telephone number and address.
The act does not prohibit the purchase or sale of subscriber list information.

We recommend a comprehensive reading and understanding of the Telephone
Records & Privacy Protection Act, which is presented following in its entirety.

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