Newsroom

September 02, 2015

CBA files suit against FCC after robocall ruling

The Consumer Bankers Association filed suit against the Federal Communications Commission on Wednesday in response to the agency's recent ruling on robocall exemptions.

NAFCU has raised concerns about the exemption's potential to prevent credit unions from alerting members about identity theft or data breaches in a timely matter. Senior Vice President of Government Affairs and General Counsel Carrie Hunt outlined those concerns in a letter to the FCC earlier this week.

CBA is asking the U.S. District Court of Appeals in Washington, D.C., to review the ruling on the grounds that its changes are unlawful under the Telephone Consumer Protection Act. CBA has the standing for the suit because of a petition for a declaratory ruling it filed with the FCC last year, before the agency's ruling was made.

When the order was first issued in July, NAFCU wrote the FCC to emphasize that the FCC's distinctions between mobile and residential phones was outdated, and noted that regulations with such a distinction will have the unintended consequence of reducing consumers' access to vital financial information if they rely on mobile phones.

NAFCU also maintains that technical questions as to whether or not the member will be charged for such texts or calls by their plan provider, or if they will count against their plan limits, may be impossible for a credit union to resolve.

In July, Hunt met with FCC Commissioner Ajit Pai to discuss the ruling and discuss possible adjustments to help credit unions. NAFCU staff will continue to monitor the issue and advocate for credit unions' interests.