Established Business Relationship and TCPA

The Telephone Consumer Protection Act (TCPA) draws a clear line between what’s allowed and what’s actionable. One of the safest ways to stay on the right side of that line is by establishing a legally recognized business relationship (EBR). We understand that handling the complexities of the TCPA can feel overwhelming for collection agencies and law firms, especially given the high stakes of compliance and potential legal risks.

According to WebRecon, 1,683 TCPA lawsuits were filed in 2023. With statutory damages of $500 per call or text, even small mistakes can quickly lead to considerable financial risk. In this post, we will break down what qualifies as an EBR under the TCPA and guide how to document it in a defensible manner.

Quick look:

TCPA Rules Are Not Optional: If you are calling, texting, or faxing consumers, you need to know the boundaries. Staying compliant protects your agency from costly penalties and builds consumer trust.
Established Business Relationships (EBRs) Have Limits: An EBR lets you reach out based on prior transactions or inquiries—but only within defined timeframes. Don’t assume it lasts forever.
Consent and EBR Are Not the Same Thing: Consent is explicit and often written. EBR is based on past interactions. Knowing when each applies is critical to avoiding violations.
Respect the Do-Not-Call Registry: Agencies must scrub against the National DNC list and honor opt-out requests immediately. Noncompliance here is a fast track to litigation.
Documentation Is Your Defense: Keep clear, timestamped records of transactions, inquiries, outreach attempts, and opt-outs. If challenged, your audit trail should speak for itself.

What Is an Established Business Relationship (EBR)?

The Telephone Consumer Protection Act (TCPA) is a federal law enacted in 1991 to regulate the manner in which businesses and agencies can contact consumers through phone calls, texts, and faxes. Its goal is to protect consumer privacy and limit unwanted or harassing communications. The Federal Communications Commission (FCC) enforces the TCPA and sets detailed rules for compliance.

One of the most important concepts under the TCPA is the Established Business Relationship (EBR). An EBR creates a limited exemption that allows certain calls to consumers without requiring prior express written consent. However, this exemption is narrow and bound by strict timelines.

Under the TCPA and FCC rules (47 U.S.C. § 227; 47 C.F.R. § 64.1200):

An EBR exists when a consumer has made a purchase, transaction, or payment with a business or agency within the past 18 months.
An EBR also exists when a consumer has made an inquiry or application within the past 3 months.
The exemption allows contact but does not override the National Do-Not-Call (DNC) Registry. If a consumer is on the DNC list, agencies must still respect opt-out rules.
Agencies must maintain clear records of when and how the EBR was created to demonstrate compliance in the event of a challenge.

In short, an EBR provides a pathway for lawful communication, but it does not eliminate the need for careful compliance with other TCPA restrictions.

Now that we have a clearer understanding of what an Established Business Relationship means under the TCPA, it is essential to determine who is actually covered by the TCPA’s rules and restrictions.

Who Is Covered by the TCPA?

The TCPA applies broadly to any “person or entity” making calls, sending texts, or sending faxes to consumers using automated telephone dialing systems (ATDS), prerecorded messages, or artificial voice messages. Debt collection agencies must be particularly careful, as the law applies to both commercial and debt-related communications.

Key points on coverage:

Consumers: The TCPA protects individuals, not businesses, who are called or texted on residential or wireless numbers.
Agencies and Creditors: Any company or third-party debt collector contacting consumers using automatic dialing or prerecorded messages is covered.
Scope of Communication: Applies to voice calls, text messages, and fax communications.
Exemptions: Some calls may be exempt if they are purely informational (e.g., fraud alerts) or if the consumer has an established business relationship (EBR).
Do-Not-Call considerations: Even if a consumer has an EBR, the agency must honor opt-out requests and comply with the National DNC Registry.

With the coverage clearly defined, the next step is to explore how debt collectors can establish an EBR under TCPA rules to safely communicate with consumers.

How Can Debt Collectors Establish an EBR?

Establishing an EBR allows debt collectors to contact consumers within certain TCPA rules. While an EBR provides an exemption, agencies must carefully document interactions and follow strict timelines.

Below are the primary methods by which debt collectors can legally establish an EBR.

1. Through Consumer Transactions

Debt collectors can form an EBR when a consumer has completed a payment, purchase, or financial transaction. This relationship gives limited permission to contact the consumer for debt-related purposes.

Key points:

Must have occurred within the past 18 months.
Include any past loans, bills, or services provided to the consumer.
Document the date and type of transaction.
Proper records protect against TCPA disputes.

2. Through Consumer Inquiries or Applications

A TCPA existing business relationship may also exist when a consumer has made an inquiry or submitted an application about a service. This establishes a relationship even without a completed transaction.

Key points:

Must have occurred within the past 3 months.
Examples include requesting account information, applying for a repayment plan, or inquiring about an existing account.
Record the date, nature, and outcome of the inquiry.
Documentation ensures outreach remains within TCPA limits.

3. Through Proper Documentation and Recordkeeping

Maintaining accurate and accessible records is essential to prove that an EBR exists. Agencies cannot rely solely on memory or informal notes.

Key points:

Log dates, types of interactions, and any consent or preferences expressed by the consumer.
Use digital systems to track timelines and communication limits.
Records provide evidence if a consumer disputes the contact.
Regular audits help ensure ongoing compliance.

4. By Respecting Communication Limits

Even with a valid EBR, debt collectors must adhere to communication restrictions to remain compliant with the law. An EBR does not give unrestricted permission to contact consumers.

Key points:

Always honor opt-out requests.
Automated calls or texts to wireless numbers must still follow TCPA rules.
Monitor outreach frequency and methods to prevent violations.
Compliance protects both the agency and the consumer relationship.

Understanding how to establish an EBR is important, but it is equally critical to know how it differs from consumer consent, which has separate requirements under the TCPA.

Looking to reduce outbound calls while resolving debts more efficiently? Tratta provides a Consumer Self-Service Platform that allows consumers to manage their payments directly, helping agencies stay TCPA-compliant. Schedule your demo today.

Difference Between EBR and Consent

Consent under the TCPA means a consumer has given explicit or implied permission to be contacted. While both Established Business Relationships and consumer consent allow debt collectors to contact consumers under the TCPA, they are distinct in scope, duration, and requirements.

Key differences:

Source: EBR is based on a prior transaction, payment, or inquiry, whereas consent is an explicit agreement from the consumer to be contacted.
Duration: EBR is limited by specific timeframes (18 months for transactions, 3 months for inquiries), while consent remains valid until revoked.
Form: Consent is often written, verbal, or electronic, depending on the type of communication, while EBR is documented through agency records.
Scope of Communication: EBR only permits certain communications related to the existing relationship, while consent can allow broader outreach if properly documented.

Properly distinguishing between EBR and consent ensures that agencies avoid overstepping TCPA limits while maintaining effective consumer engagement.

You should also be aware of how EBR interacts with the Do-Not-Call Registry and the requirements that collection agencies must meet to remain compliant. This is covered in the next section.

EBR and the Do-Not-Call Registry

Even with an Established Business Relationship, debt collection agencies must comply with the National Do-Not-Call (DNC) Registry. The TCPA and FCC rules make it clear that an EBR does not provide blanket permission to contact consumers who have opted out or are listed on the DNC.

Key points and statutes:

The TCPA (47 U.S.C. § 227(c)) prohibits calls to numbers listed on the National DNC Registry, even if an EBR exists.
The FCC rules (47 C.F.R. § 64.1200(c)) clarify that EBR allows calls without prior express consent, but only within the specified timeframes (18 months for purchases and 3 months for inquiries).
Agencies must honor any consumer-initiated opt-out requests immediately, regardless of whether an EBR is in effect.
Proper documentation of EBR timelines and opt-out requests is essential to defend against complaints or enforcement actions.
Combining DNC compliance with EBR recordkeeping ensures agencies mitigate TCPA risks while maintaining engagement.

Having covered how EBR interacts with the Do-Not-Call Registry, it is important to understand the enforcement mechanisms and penalties for non-compliance, which can carry significant financial and reputational consequences for agencies.

Time Limits on Established Business Relationships

An EBR provides debt collection agencies with a limited window to contact consumers without prior express consent under the TCPA. Understanding these time limits is crucial to remaining compliant and avoiding violations, as contacting consumers outside these periods can nullify the EBR exemption.

Key points and statutory references:

Purchases or transactions: An EBR based on a consumer’s payment, purchase, or account activity remains valid for 18 months from the date of the transaction. (47 C.F.R. § 64.1200(f)(5))
Inquiries or applications: An EBR based on a consumer inquiry or application lasts 3 months from the date of the inquiry. (47 C.F.R. § 64.1200(f)(5)), FCC Declaratory Ruling
After these periods, agencies must obtain prior express consent before contacting the consumer.
Agencies should maintain records of all transactions and inquiries to verify that any contact falls within these timeframes.
Proper monitoring of timelines ensures debt collectors avoid TCPA penalties and maintain accurate compliance documentation.

With the time limits clearly defined, the next critical step for agencies is to understand how to document interactions and maintain records to ensure EBR compliance.

How to Document for EBR Compliance

Proper documentation is essential for debt collection agencies to prove the existence of an Established Business Relationship and demonstrate TCPA compliance. Detailed records not only support lawful outreach but also protect agencies in the event of consumer disputes or regulatory inquiries.

Key documentation practices:

Record the Interaction Type: Note whether the EBR is based on a purchase, transaction, or inquiry.
Include Dates and Details: Log the date of the transaction or inquiry, the amount (if applicable), and the nature of the interaction.
Track Communication Preferences: Document any opt-out requests or consent revocations to ensure outreach respects consumer rights.
Maintain Accessible Records: Use digital systems that allow easy retrieval of EBR timelines and supporting evidence.
Audit and Update Regularly: Periodically review records to confirm that all contacts are within the allowable EBR period.

Well-maintained documentation ensures agencies stay compliant, minimize risk, and maintain professional consumer relationships.

You can track all consumer interactions and EBR documentation in one place with Tratta. The reporting and analytics feature makes it easier to ensure communications stay within TCPA timelines and limits. Get in touch with us to know more.

With proper documentation in place, agencies can focus on executing outreach campaigns safely and effectively. The following section outlines best practices for TCPA-compliant outreach to maximize engagement while maintaining compliance.

Best Practices for TCPA-Compliant Outreach

Even with an Established Business Relationship (EBR), debt collection agencies must follow strict guidelines to stay TCPA-compliant while maintaining effective communication. Adopting best practices helps reduce legal risk, strengthen consumer trust, and improve collection outcomes.

Key best practices include:

Automated EBR Tracking: Logs transactions, inquiries, and timelines to ensure outreach stays within allowed EBR periods.
Secure Communication Channels: Ensures emails, texts, and calls comply with consent and EBR requirements.
Reporting & Analytics: Provides insights into interactions, opt-outs, and outreach success, supporting audit readiness and compliance verification.
Opt-Out Management: Automatically tracks and enforces consumer opt-outs to avoid TCPA violations.
Documentation Repository: Centralizes all records of transactions, inquiries, and communication preferences for easy retrieval.
Campaign Automation & Scheduling: Ensures outreach aligns with EBR timelines and avoids exceeding contact limits.

By following these best practices, agencies can safely reach consumers while staying compliant. Tratta can further simplify EBR management, documentation, and reporting, making TCPA-safe outreach more efficient and reliable.

Simplify EBR Management with Tratta

Managing Established Business Relationships while staying TCPA-compliant can be complex for debt collection agencies. Tratta provides a comprehensive platform that centralizes communication, automates compliance workflows, and improves consumer engagement.

Key features include:

Consumer Self-Service Portal: Allows consumers to manage payments and account details independently, reducing the need for outbound calls while staying within TCPA limits.
Embedded Payments: Enables secure, direct payment options within communications, ensuring transparency and proper tracking of transactions tied to EBR.
Multilingual Payment IVR: Provides automated support in multiple languages, helping agencies reach consumers accurately while maintaining compliance.
Omnichannel Communications: Consolidates calls, texts, and emails in one platform, ensuring all outreach adheres to EBR timelines and respects opt-out requests.
Campaign Management: Schedules and automates communications to align with EBR periods, preventing excessive or non-compliant contact.
Reporting & Analytics: Tracks interactions, opt-outs, and campaign performance, helping agencies verify compliance and optimize collection strategies.
Customization & Flexibility: Agencies can personalize communications and workflows to their compliance policies and operational needs.
Integrations / API: Connects with existing systems to ensure accurate data flow and proper documentation of all EBR interactions.
Security & Compliance: Protects sensitive consumer data and enforces regulatory requirements, supporting TCPA compliance and audit readiness.

Tratta enables debt collection agencies to simplify EBR management, maintain TCPA compliance, and resolve accounts more efficiently, all while maintaining high consumer engagement and transparency.

Conclusion

Remaining TCPA-compliant is essential for debt collection agencies to avoid regulatory penalties, protect consumer trust, and maintain effective outreach. Understanding TCPA existing business relationships, consent, and the Do-Not-Call rules ensures agencies communicate lawfully while maximizing collections.

Tratta makes managing compliance easier by centralizing EBR documentation, tracking timelines, and providing actionable insights through reporting and analytics. You can reduce outbound calls, automate campaigns, and maintain audit-ready records effortlessly.

Stay TCPA-compliant, enhance consumer engagement, and resolve accounts faster. Schedule your free demo.

Frequently Asked Questions

1. Does the TCPA only apply to existing customers?

No. The TCPA applies to any individual with a residential or wireless phone number who is contacted using automated calls, texts, or prerecorded messages. It protects both existing and prospective consumers, although exemptions, such as an EBR, allow for limited outreach to certain contacts.

2. What is a TCPA existing business relationship?

A TCPA Existing Business Relationship (EBR) exists when a consumer has completed a transaction, made a payment, or submitted an inquiry within specified timeframes. It allows limited contact without prior express consent, provided outreach respects TCPA timelines and consumer rights.

3. Can debt collectors call numbers on the Do-Not-Call Registry?

Even with an EBR, debt collectors must honor the National Do-Not-Call Registry. Contacting these numbers without explicit consent or ignoring opt-outs may result in TCPA violations and regulatory penalties.

4. How long does an EBR last under TCPA rules?

An EBR based on a transaction or payment lasts 18 months, while an EBR from an inquiry or application lasts 3 months. After these periods, prior express consent is required for further communication.

5. What is the difference between EBR and consent?

EBR is based on a prior transaction or inquiry and is subject to time constraints. Consent is a consumer’s explicit agreement to be contacted, which remains valid until revoked and may allow broader outreach than EBR.

6. How can agencies prove an EBR exists?

Agencies must maintain detailed records, including dates, types of transactions or inquiries, amounts, and communication logs. Proper documentation ensures compliance verification and protects against TCPA disputes or regulatory inquiries.