Payment Reminder Texts and the 2026 TCPA Ruling

The TCPA was enacted in 1991, before SMS existed. Courts have spent years debating whether Congress intended "telephone call" to cover text messages.

In McGonigle v. Shopperschoice.com, the court relied on ordinary-meaning analysis at the time of enactment, noting that "call" meant "to get or try to get into communication by telephone." It reasoned that the statute's general terms can embrace later technological innovations like texting.

The court also pointed to statutory context: Section 227(c) broadly targets "telephone solicitations," and Congress has elsewhere ratified the understanding that "telephone call" under Section 227(b) includes texts. That interpretation, the court concluded, strongly informs the identical language in Section 227(c).

The court acknowledged a growing division among district courts over whether Section 227(c)(5) encompasses text messages, citing decisions that go "both ways," including Alvarez and Wilson finding coverage and Davis and Jones rejecting it. This split deepened after the Supreme Court curtailed deference to agency interpretations in Loper Bright and McLaughlin, which means courts now interpret the statute on their own rather than deferring to FCC guidance.

The distinction that matters most for contractors is the difference between marketing messages and informational messages.

Marketing texts require prior express written consent. According to ActiveProspect, that means a signed, documented agreement specifically authorizing you to send promotional messages. A verbal "sure, text me" does not qualify.

Informational texts, which include payment reminders, appointment confirmations, and delivery notifications, require a lower level of consent. Text-Em-All's FAQ states that informational messages typically require implied consent, while promotional texts need express written consent.

A payment reminder text message falls into the informational category. You are not selling anything. You are notifying a client that money is owed for work already completed. But "informational" does not mean "unregulated."

The TCPA applies to both marketing and informational texts, according to Text-Em-All. That means your weekly sale announcement and your payment reminder both fall under its scope, though the level of consent required differs.

Separately from the court rulings, the FCC's one-to-one consent rule took effect in January 2026. According to Infobip, consent cannot be shared across brands or sold to third parties under this rule. Each sender entity must obtain its own consent from each consumer. Infobip describes this as closing the "lead-generator loophole," and notes it significantly affects affiliate marketing and multi-brand programs.

For most contractors, this changes nothing. You are texting your own clients about your own invoices. But if you use a third-party lead generation service, or if a general contractor passes client numbers down to subcontractors, the new rule matters. The sub cannot rely on the GC's consent. Each business must collect its own.

1. Get Consent Before You Text

Collect a phone number and permission to text at the start of every job. This can be part of your contract, your intake form, or a simple SMS opt-in page. The key is documentation. ActiveProspect lists record keeping as a core TCPA requirement: businesses should maintain auditable consent records.

For informational messages like payment reminders, implied consent is generally sufficient. But having written consent removes ambiguity entirely.

2. Send Only During Permitted Hours

Text-Em-All states that TCPA requires businesses to send messages only during approved hours, typically 8 a.m. to 9 p.m. local time. Those hours are based on the recipient's time zone, not yours. If you are in California and your client is in New York, a 7 p.m. Pacific text arrives at 10 p.m. Eastern. That is a violation.

3. Identify Your Business in Every Message

Include your business name in the message body. The recipient should know who is texting without clicking a link or guessing. A compliant payment reminder text message looks like this:

Not this: "Hey, just a reminder your invoice is due this week."

4. Honor Opt-Outs Through Any Reasonable Method

Since April 2025, according to Infobip, businesses must honor opt-out requests made through "any reasonable method," not just keyword replies like STOP. This includes opt-outs communicated by email, voicemail, or informal language. Processing must occur within 10 business days, though real-time processing is best practice.

If a client texts back "please stop sending me these," that counts. If they call your office and ask to be removed, that counts too.

5. Keep Records

Document every opt-in and every opt-out. If you are using a tool like Nudge to automate your payment reminder text messages, consent tracking and opt-out handling are built into the workflow. If you are texting manually from your phone, you need a system, even if it is a spreadsheet, that logs when each client gave permission and when (if ever) they revoked it.

One common misconception: contractors often assume the TCPA only applies to consumer marketing. Text-Em-All addresses this directly in their FAQ: TCPA can still apply when you text business customers. Business-to-business messaging is not automatically exempt just because the recipient is a company or the number is tied to work.

Their FAQ on B2B marketing texts is equally clear: "Not automatically. The message type, consent expectations, and delivery method still matter."

If you do commercial work and text a property manager about an overdue invoice, the same rules apply. Consent, timing, identification, opt-out handling.

According to Text-Em-All, violations can result in fines of $500 to $1,500 per message. Infobip notes there is no cap on total liability, meaning non-compliant high-volume campaigns can incur significant penalties. ActiveProspect adds that violations also carry class action litigation and FCC enforcement risk.

If you already text clients about unpaid invoices, run through this checklist:

• Consent documentation. Can you prove every client opted in? If not, add an opt-in step to your contract or intake form.
• Message content. Does every text include your business name and opt-out instructions?
• Timing. Are you sending between 8 a.m. and 9 p.m. in the client's time zone?
• Opt-out handling. Do you have a process for honoring removal requests from any channel, not just STOP replies?
• Record keeping. Are you logging consent and opt-outs somewhere retrievable?

A payment reminder text message is still the fastest way to get an overdue invoice paid. The courts have not banned texting. They have clarified that texts carry the same legal weight as calls, which means the same consent and compliance rules apply. Set up the right process once, and it protects every text you send going forward.

Do I need written consent to send a payment reminder text message?

Payment reminders are generally classified as informational messages, which require a lower level of consent than marketing texts. According to Text-Em-All, informational messages typically require implied consent, while promotional texts need express written consent. Having documented written consent removes any ambiguity.

Can I text a client at any time about an overdue invoice?

No. Text-Em-All states that TCPA requires messages to be sent only between 8 a.m. and 9 p.m. in the recipient's local time zone. Sending outside those hours is a violation regardless of the message content.

What happens if a client replies "stop" to my payment reminder?

You must honor the opt-out. According to Infobip, since April 2025 the FCC requires businesses to process opt-out requests made through any reasonable method within 10 business days. You cannot continue texting that client about invoices or anything else unless they opt back in.

Does the TCPA apply if I text a business number, not a personal phone?

According to Text-Em-All, business recipients are not automatically exempt from TCPA. The message type, consent expectations, and delivery method still matter. Treat business messaging with the same compliance discipline as consumer messaging.