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.

The FCC adopted a one-to-one consent restriction in 2023 for certain telemarketing and advertising robocalls and robotexts, but it did not become an ongoing federal requirement. The FCC postponed its effective date while judicial review was pending, and on January 24, 2025 the Eleventh Circuit vacated the challenged restrictions. In July 2025, the FCC updated its rules to reflect the court's mandate and reinstated the prior version of the rule.

So businesses should not describe the vacated one-to-one rule as a current federal requirement. Consent obligations can still arise under other TCPA provisions, FCC rules, state laws, contracts, and the facts of a particular messaging program. For a specific campaign, get advice from qualified counsel.

1. Document Consent Before Automated Texts

Collect a phone number and permission to text as part of your normal customer intake when SMS will be used. Keep a record of what the customer agreed to, when they agreed, and what number the consent covered. Nudge requires a recorded consent state before automated SMS delivery as a product safeguard, but businesses remain responsible for determining what consent their use case requires.

2. Review Time-of-Day Rules

Federal and state restrictions can differ by message type and jurisdiction. Avoid assuming one universal sending window covers every payment-reminder program; review the rules that apply to your recipients and messaging method, and get qualified advice when needed.

3. Identify Your Business in Every Message

Include your business name in the message body so the recipient can tell who is contacting them without clicking a link or guessing. A clearly identified payment reminder might look 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?

SMS can be one useful channel for overdue-invoice follow-up, but it does not guarantee faster payment. Texting rules can depend on the message, consent, jurisdiction, and circumstances, so businesses should maintain documented consent and opt-out processes and get appropriate legal guidance for their use case.

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

Consent requirements depend on the message, technology used, relationship with the recipient, and applicable federal and state rules. Do not rely on the label "payment reminder" alone. Nudge requires a recorded consent state before automated SMS delivery, and keeping documented consent is the safer operational practice.

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

Do not assume automated payment reminders can be sent at any hour. Time-of-day restrictions can vary by message type and jurisdiction, including state law. Review the rules that apply to your recipients and messaging method before setting a sending policy.

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

Honor opt-out requests promptly and keep a record of the suppression. FCC rules address reasonable revocation methods for covered robocalls and robotexts, and other laws may add obligations. Nudge suppresses future automated SMS when an opt-out is recorded, but businesses remain responsible for handling requests received through their other channels.

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

Do not assume a business number is automatically outside every TCPA or state-law restriction. The message purpose, technology, consent history, recipient, and jurisdiction can matter, so review the rules that apply to the specific messaging program.

This article is informational, not legal advice. For primary materials, see the FCC's 2024 TCPA order, the FCC's July 2025 order reflecting the vacatur of the one-to-one consent rule, and the 2026 McGonigle district-court ruling. Rules and court interpretations can change, so consult qualified counsel about a specific campaign or dispute.