Newsroom

Ahead of a NAFCU-sought hearing slated this Wednesday on the effects of the Telephone Consumer Protection Act on consumers and businesses, NAFCU shared with leaders of the Senate Commerce, Science and Transportation Committee the concerns it has conveyed to the Federal Communications Commission 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. NAFCU is concerned that the order could lead credit unions to cease important communications with members about their accounts over fear of inadvertently violating the rule.

After FCC released the order, NAFCU wrote the commission outlining its concerns, noting the ruling raises more questions than answers. This letter was sent to leaders of the Senate Commerce, Science and Transportation Committee on Friday.

Most recently, NAFCU Executive Vice President of Government Affairs and General Counsel Carrie Hunt urged the FCC to develop a "common sense interpretation" of "residential" phone line under the TCPA to ensure consumers receive information from their financial institutions on both their mobile and residential phone lines.

Hunt explained that under the TCPA, the FCC requires prior written consent for all automated calls unless the call does not include an advertisement or is not considered telemarketing. However, for a mobile phone line, a consumer's prior written consent is necessary regardless of the purpose of the call. Because more and more consumers do not have traditional home phone lines, Hunt wrote that this distinction is "problematic for many credit unions" and urged the FCC to remove it from the TCPA.

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.