Lesson 8 of 108 minutes
The TCPA demand letter: the numbers, how exposure is calculated, and pay, dispute or ignore
Of all the letters in Lesson 7, the one a small business most often opens is about marketing calls or texts. It cites 47 U.S.C. § 227, lists calls to specific numbers on specific dates, puts a dollar figure on them, and gives a deadline. This lesson takes that letter apart: who sends it, how the number was built, and what each of the three responses leads to.
Who sends them
Three kinds of sender. Plaintiffs' lawyers acting for a person who received the calls, often with a class action in mind. Enforcement companies that register numbers, document the calls they receive, and send demand letters, referring unresolved matters to lawyers who file. And individuals who know the statute and write their own. All three are using the same private right of action, which belongs to the person called. A sender that is not a law firm cannot file a lawsuit itself; it refers the matter to lawyers who can. That is not a reason to ignore the letter.
How the number was built
The arithmetic is in the statute. $500 per call or text in violation. Up to $1,500 per call if the violation was willful or knowing. Four years back from the filing of a lawsuit, under the federal catch-all limitations period in 28 U.S.C. § 1658. For calls to Florida numbers, Fla. Stat. § 501.059 adds its own $500 to $1,500 per call on top.
| Documented calls | Federal floor | Federal ceiling | With Florida stacked |
|---|---|---|---|
| 1 | $500 | $1,500 | up to $3,000 |
| 10 | $5,000 | $15,000 | up to $30,000 |
| 100 | $50,000 | $150,000 | up to $300,000 |
The demand in the letter is almost always below the floor for the documented calls. That gap is the sender's offer to resolve now. The documented calls are the ones the sender can prove to one person's numbers. A lawsuit's discovery covers every call your records show to everyone, which is why the letter's figure and the lawsuit's figure are different orders of magnitude.
Reconcile before you decide
Pull your dialer or texting platform logs for the numbers and dates in the letter. For each call: is it in your logs? Do you have a written consent record for that number naming your business? Is the call more than four years old? Was it made by you or by a vendor on your behalf? That reconciliation, number by number, is the whole basis for the decision. Then turn off auto-deletion everywhere.
The three responses
Pay
You negotiate a figure, sign a settlement agreement with a release and no admission, and pay by a traceable method. The matter ends for those numbers. People choose this when the calls are real, there is no consent record, and the demand is below the statutory arithmetic. When that is your position it is the right choice: the figure is fixed, nothing is filed, and the matter ends. Negotiate in writing with a reason tied to the evidence: calls that are out of time, numbers with consent, calls that were not yours.
Dispute
You respond in writing with evidence that the claim fails: consent records per number, proof the calls came from someone else, dates outside four years, or facts that do not meet the statute. A dispute with documents changes the number or ends the claim. A dispute that just disagrees is a delay, and it costs you the early-resolution discount.
Ignore
The deadline passes. A sender with documented calls refers the matter to counsel, who file a complaint. You are served, a court deadline starts, and the claim is now every call discovery finds, with the ignored letter as evidence of willfulness. Ignoring is right only when the letter is a genuine fraud: no identifiable sender, no specific calls, payment demanded by gift card.
Two things owners get wrong
- "The vendor made the calls." A seller is liable for calls made on its behalf under ordinary agency rules. The vendor contract gives you a claim against the vendor. Tender it, and ask the vendor for its consent and scrub records, because you need them anyway.
- "Insurance will cover it." Most general liability policies exclude these claims. Notify anyway, in case yours does not.
Lesson in one line: the sender named in the letter and the website printed on it should be the same organisation. If they are not, stop and find out why before you answer.
Lesson 9 covers what happens if a letter becomes a lawsuit. Lesson 10 covers how to make sure there is no second letter.
What you should now know
- TCPA demand letters come from plaintiffs’ lawyers, enforcement companies that refer to lawyers, and individuals, all using the same private right of action.
- Exposure is calls times $500, up to $1,500 each if willful, four years back, with Florida’s statute adding the same again for Florida numbers.
- The letter lists documented calls. A lawsuit discovers all of them. The demand is usually below the floor for the documented calls.
- Reconcile every listed call against your logs and consent records before choosing a response.
- Pay ends it with a release; dispute works only with documents; ignore is right only for a genuine fraud.
- If the calls are real and there is no consent record, settling at the letter stage is the cheapest ending.
Questions from this lesson
The sender is not a law firm. Can they really do anything?
They can refer the claim to lawyers who file. The claim belongs to the person called and is real whoever writes the first letter.
We only sent one text. Why is the number so high?
Damages are per message, and the letter may list more than one, or stack the Florida claim. Check the list against your logs.
Can we negotiate?
Yes. Counter in writing with a figure and a reason tied to the evidence. Ask for an extension in the same letter.
Does paying mean we admit we broke the law?
No. A settlement agreement states that there is no admission. A judgment after a lawsuit is a public finding; a settlement is not.