The Florida Consumer Collection Practices Act and What It Could Mean for All Self-Storage Operators

In mid-2023, the Florida legislature amended the state’s Consumer Collection Practices Act. One of the changes it made was to prohibit any debt-collection communication between the hours of 9 p.m. and 8 a.m.  

When we first saw this modification, we didn’t believe it applied to self-storage operations; and even if it did, that it would only impact lien-sale noticing activities. We didn’t think it would ever affect payment-reminder notices that might be sent to tenants via electronic communication including email and text. However, some industrious class-action attorneys have filed lawsuits against storage operators in the state. In fact, one facility was sued for sending an automated billing-reminder email. 

Though we shouldn’t be shocked to see these types of legal complaints, as a self-storage operator, you should take precautions to protect yourself, regardless of your facility locations. This legislation currently impacts Florida only, but other states could eventually follow suit. Below are a few strategies you can employ to help ward off litigation. 

Update Your Rental Agreement 

One step to consider is to insert a clause to your self-storage rental agreement through which the renter grants you permission to send payment reminders and other debt-collection messages during prohibited hours. In the meantime, make sure all such communication with your customers occurs between 8 a.m. and 9 p.m. This includes but is not limited to emails or texts related to upcoming or past-due bills such as prebill notifications, invoices, collection reminders and lien notices. 

In addition, if you do not already have a Waiver of Class Action in your rental agreement, particularly if your self-storage operation is in Florida, this situation is a perfect example of why you need one. That said, some states don’t permit such a waiver, so consult with your attorney. They can help you fashion the proper language and outline the appropriate way to notify existing tenants of this contract change so it’s enforceable. 

This is an excellent reason and time to review your entire rental agreement with an attorney. If nothing else, make sure it contains the class-action waiver, if permitted. Then, at least in theory, your facility could be protected from becoming a test case in your state should this type of law go into effect and a class-action litigator brings a claim against you. 

Prevention = Protection 

We couldn’t have predicted that Florida would make a change like this to its Consumer Collection Practices Act, and I’m not certain that this law or one like it can be applied to whatever you’re doing at your own self-storage operation. However, it pays to act with an abundance of caution. 

Self-storage operators in all states should take a lesson from what happened in Florida. Innocuous changes in state laws could easily be expanded into claims against your facility, no matter where you’re located. Class actions are a particular threat. Often, your insurance doesn’t cover this type of litigation, which usually results in large attorney-fee rewards. These lawsuits are much easier to settle than fight, but settling is still often extremely expensive.  

Take the appropriate precautions to protect yourself and your self-storage business. Facility owners and managers in Florida were caught off guard. Let their experience serve as important guidance to all operators nationwide. 

The opinions expressed in this article are those of the author. The content should not be construed to constitute legal advice or to create any sort of attorney/client relationship between the author and the reader. Before undertaking any change to your self-storage policies and procedures, consult with your own attorney and insurance agent or broker. 

Jeffrey J. Greenberger is a partner with the law firm Greenberger & Brewer LLP in Cincinnati, Ohio, and is licensed to practice in Kentucky and Ohio. Jeff’s practice focuses primarily on representing the owners and operators of commercial real estate, including self-storage facilities. For more information, visit his website, www.selfstoragelegal.com, which contains his legal opinions and insights as well as an article archive. Questions can be directed to Jeff at [email protected] or 513.721.5151.