Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
CUNA: FTC Should Limit Telemarketing Rule's Impact On Payments System
WASHINGTON (8/9/13)--The Credit Union National Association appreciates the Federal Trade Commission's (FTC) ongoing efforts to limit the activities of unscrupulous telemarketers that defraud consumers, but in a recent comment letter CUNA outlined concerns regarding how proposed amendments to the FTC's Telemarketing Sales Rule could impact the broader payments system.

The FTC's proposed changes, among other things, would prohibit sellers and telemarketers when they are engaged in "telemarketing" activities on the phone, from accepting or requesting four types of "novel payment methods":
  • Remotely created checks (RCCs);
  • Remotely created payment orders;
  • Cash-to-cash money transfers; and
  • Cash reload mechanisms.
A complete ban on these four payment methods in telemarketing activities would likely shift some of these payments to other payment systems, and financial institutions and other entities will have to make appropriate risk management changes, CUNA Regulatory Counsel Dennis Tsang wrote.

"We are not aware that credit unions use these types of payment methods in telemarketing or engage in telemarketing practices that harm consumers," he added.

Noting that the proposed rule could impact check-related rules, including the regulation of RCCs, CUNA encouraged the FTC to provide information to payment processors and others to comply with the rule, while permitting legitimate payments to continue.

The CUNA letter also urged the FTC to coordinate closely with federal financial regulators to ensure legitimate payments, including emerging payment applications and financial institution collections activities, are not negatively impacted.

For the full CUNA comment letter, use the resource link.
Other Resources

CUNA Letter
RSS print
News Now LiveWire
Expanded ATM services at branches attractive to members: @CFIGroup. See #NewsNow Friday
10 hours ago
#FinCEN imposes civil money penalty against NJ's BPI money services co. for #BSA violations http://t.co/WnDzOcxdOZ
12 hours ago
.@ABCULCUs give hat tip to America's #100MM #creditunion milestone http://t.co/q8yo6Lx3LM
13 hours ago
The @CFPB has announced new Credit Union Advisory Council members, as well as other senior leaders, advisory board and council members.
14 hours ago
GDP expanded 4.2% on an annualized basis in 2Q according to Bureau of Economic Analysis
14 hours ago