Reply #3: This is

[ProSense]

one of those stories designed to spark outrage when there's not much there.

Here's the National Consumer Law Center release: Obama Deficit Plan Would Allow Debt Collector Robo-Calls to Cell Phones (PDF)

(Washington, DC) Buried in President Obama’s deficit reduction plan (see page 28) is a proposal to allow debt collectors “to contact delinquent debtors via their cellular phones” when collecting debts owed to or guaranteed by the federal government. The proposal will not help reduce the deficit and is harmful for consumers, the National Consumer Law Center warned today.

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Currently, debt collection calls to cell phones are limited because collectors must check their phone number lists against a list of known cell phones and cannot call those numbers unless the consumer has provided that number as a way of reaching them. Though the proposal is limited to debts owed or guaranteed by the federal government, millions of consumers will be affected, including graduates who can’t pay their loans due to the terrible job market, homeowners who are behind in mortgages, and people who are in tax disputes with the Internal Revenue Service. Families who have lost their homes to foreclosure could be exposed to cell phone calls for years if the delinquency on their mortgage is sold to debt buyers.

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The language from the President's proposal:

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Allow agencies to contact delinquent debtors via their cellular phones. The Administration also proposes to amend the Communications Act of 1934 to facilitate collection of debts owed to or guaranteed by the Federal Government, by facilitating contact of delinquent debtors who are most readily reached on their cell phones. This provision is expected to provide substantial increases in collections, particularly as an increasing share of households no longer have landlines and rely instead on cell phones.

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