October 21, 2015

NAFCU joins suit against FCC

A federal appeals court judge is allowing NAFCU to enter a suit challenging the Federal Communications Commission's order on Telephone Consumer Protection Act prohibitions on autodialed calls to account holders. NAFCU will participate in a joint brief to be filed Dec. 2.

The association filed its motion to intervene in September and now becomes a party in the petition filed by the U.S. Chamber of Commerce seeking a review of the FCC order. The order responds to 19 petitions from various businesses and organizations that, among other things, sought clarification of FCC rule changes under TCPA that took effect in 2013. The various petitions are being consolidated.

The FCC order allows a narrow exemption for certain autodialed calls to address potential account fraud or identity theft. However, NAFCU is asserting the order is too broad in its definition of what qualifies as an autodialer.

The association 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. It is participating in this litigation against the FCC to help protect credit unions' right to communicate with their members and preserve the institutions' unfettered ability to alert members when necessary to protect their accounts and information.

A brief filing schedule is included in the order, which shows all filings completed by Feb. 24. An order setting a date for oral arguments will come after that.