By Jennifer Downer

ecent lawsuits against self-storage operators have left many owners questioning whether their communication practices comply with state Fair Debt Collection Practices Acts (FDCPAs). Surprisingly, some of these lawsuits don’t revolve around typical collection calls—they’re targeting emails sent outside the permissible hours for debt collection communication.

This issue raises critical questions for the self-storage industry, such as whether an email timestamped for delivery at 2 a.m. violates the same laws that restrict phone calls during certain hours. Without legal clarity, it’s left to operators to reassess their practices to avoid the risk of costly litigation.

This article will guide self-storage operators through the current regulatory landscape and provide actionable steps to stay compliant while maintaining efficient communication with tenants.

Disclaimer: This is intended for informational purposes only and does not constitute legal advice. The content provided should not be used as a substitute for consulting a qualified attorney. Self-storage operators are encouraged to review their practices in accordance with their state’s laws and regulations.

The FDCPA was originally enacted to protect consumers from abusive debt collection practices. While these laws are primarily aimed at third-party collection agencies, several states, including Florida and California, also apply their rules to creditors collecting their own debts.

A key provision in these laws limits communication with consumers to “reasonable hours,” typically from 8 a.m. to 9 p.m. For years, this rule was applied to phone calls, but recent lawsuits allege that emails sent outside these time frames are also a violation.

For example, some plaintiffs argue that an email arriving in a consumer’s inbox at 2 a.m. constitutes an intrusive communication akin to a late-night phone call. This raises an important question for self-storage operators and other businesses: Is an email the digital equivalent of a phone call or a physical letter?

Unlike phone calls, emails don’t demand immediate attention; they sit in inboxes until opened. Yet, consumer protection statutes often use broad definitions for communication, leaving this issue open to interpretation in court.

The definition of “communication” in debt collection laws often includes phrases like “the conveying of information regarding a debt directly or indirectly … through any medium.” Under this language, emails likely qualify as communication. However, the timing of email “delivery” is a gray area. Does the act of sending the email constitute communication? Or does it occur when the tenant opens the email? No court has ruled on these specifics yet, leaving self-storage operators vulnerable to lawsuits based on unsettled legal interpretation.

Since these are novel legal claims, the lawsuits are essentially tests of the law. Attorneys filing these cases often aim for quick settlements rather than drawn-out legal battles. For operators, it’s a cost-benefit analysis:

• Settle Quickly – Avoid prolonged legal fees but “feed the beast” by encouraging future lawsuits.
• Fight The Case – Potentially incur fees far exceeding the settlement amount, with no guarantee of winning.

Until there’s legal clarity, many operators find themselves walking on eggshells, risking litigation by default.

LIMIT COMMUNICATION TO LEGAL HOURS
The simplest and safest action self- storage operators can take is to ensure that email and text communications are only sent between 8 a.m. and 9 p.m. Using automated systems to schedule these messages can remove the risk of sending late-night communications.

LEVERAGE REMOTE MANAGEMENT TOOLS
Platforms like XPS Solutions can provide robust assistance in streamlining tenant communication while adhering to consumer protection laws.

• Automate email and text delivery during permissible hours.
• Monitor delinquent accounts and send compliant reminders using AI-powered solutions.
• Reduce human error by standardizing communication practices across your facility.

By incorporating remote management systems, operators can avoid accidental violations and maintain positive relationships with tenants.

STAY UPDATED ON LEGISLATIVE DEVELOPMENTS
Industry organizations like the Self Storage Association (SSA) and Florida Self Storage Association (FSSA) are actively working toward resolving this issue through legislative action. For instance, legislation to address this ambiguity may be introduced in Florida’s 2025 session. Keeping informed through these associations is crucial to staying ahead of potential compliance risks.

CONDUCT REGULAR COMPLIANCE TRAINING
Educate your team on state-specific debt collection laws. Understanding the nuances of terms such as “communication” and “permissible hours” will empower your staff to make informed decisions when navigating tenant disputes.

CONSULT A LEGAL EXPERT
For operators who regularly deal with delinquent accounts, consulting with an attorney experienced in consumer protection and debt collection laws can provide much-needed clarity. Legal guidance is your best safeguard against costly oversights.

QUICK SETTLEMENTS
Most of these lawsuits are not aimed at correcting unfair practices but at capitalizing on technical violations to prompt settlements. The outcome of such cases, whether a quick settlement or protracted litigation, makes one thing clear for operators: Proactive compliance with FDCPAs is far cheaper than the cost of a single lawsuit.

First call to action: The way courts interpret these issues will define whether a 2 a.m. email constitutes a violation. For now, prevention is the best solution. Simple measures like automating communication schedules and leveraging remote management systems go a long way in protecting operators from unnecessary litigation.

Take action now! Your peace of mind is just a call away.