December 11, 2015

FTC finalizes telemarketing sales rule

A final rule revising the Federal Trade Commission's telemarketing sales rule, published in today's Federal Register, could have unintended consequences on payments systems used by credit unions.

The finalized amendments are aimed at protecting consumers from deceptive or abusive practices in telemarketing. In a letter to the FTC in August 2013, NAFCU noted that the amendments do not specifically apply to federal credit unions, but to state-chartered credit unions and third-party telemarketers hired by both federal- and state-chartered credit unions.

NAFCU expressed concern about the rule's possible effect on payments systems, particularly with respect to remotely created checks, and asked that the FTC work closely with the Fed, CFPB and other stakeholders to avoid any negative effects on payments systems.

The rule becomes effective 60 days after its publication in the Federal Register.