Our bank is interested in reaching out to loan customers by text message about upcoming payment due dates and past due messages. Any issues that I need to worry about before this gets started?

Thanks

The last bank I was at wanted to do this, but they hadn't gotten consent from the customer. They were in the process of adding consent language to their loan application templates when I left. TCPA is the guiding regulation for this.

I think that it's important to consider that customers may not be all that careful about who can see those texts.

Thanks for the information!

Better check state law.

TCPA as AudOne pointed out is my first issue. If you're not sending out notices required to be in writing by federal law/reg E-SIGN isn't an issue but you could look at your states UETA just in case.

I will say that somewhere along the line I signed up with a credit card I have and I get a notice that payment is due in 10 days, followed by an email that it's due in 10 days and I worry what would happen if I was actually past due. So please ensure the customers know what will come and when.

Any updates in this area? Slow to the idea, but considering what hoops we would have to jump through. Also - is there software that runs this process?

No idea on the software but in 5 years I believe it is more and more common to allow a customer to opt into some notices and increasingly get this info from an app on a handheld device from the FI. Certainly there is more integration there, but an email or text that says "you have a new message on your XYZ app" adds security and privacy.