Newsroom

NAFCU and five other financial trade associations last night reiterated concerns with the Senate Commerce, Science and Transportation Committee regarding the Federal Communications Commission's Telephone Consumer Protection Act ruling on autodialed calls as the panel prepares for a hearing today on the issue.

Last July, FCC released a declaratory ruling and order that provides limited robocall exemptions under the TCPA for financial institutions making free autodialed calls to consumers. The financial trade groups are concerned that the order could lead financial institutions to cease important communications with members about their accounts over fear of inadvertently violating the rule.

The statement, which will be entered into today's hearing record, outlined the risks involved for financial institutions should they violate the rule. "This risk of draconian liability has led financial institutions to limit – and, in certain instances, to eliminate – many pro-consumer, non-telemarketing communications, including calls to combat fraud and identity theft, provide notice of data security breaches, and help consumers manage their accounts and avoid late fees and delinquent accounts," the statement noted.

NAFCU, with the trades, made three points in the statement:

• The FCC's interpretation of the TCPA has a "detrimental impact on consumers by effectively preventing financial institutions from sending important, and often time-sensitive, messages to consumers."
• Because the TCPA is outdated compared to today's technology and the communication preferences of consumers, financial institutions are prevented from effectively serving those consumers who prefer to communicate via cell phone.
• Congress should reform the TCPA.

Ahead of today's NAFCU-sought hearing, the association also shared with leaders of the committee the concerns it has conveyed to the FCC on the issue.

Last October, NAFCU entered a suit challenging the FCC's order on TCPA prohibitions on autodialed calls to account holders. The case now awaits a court date for oral arguments.