Removing Barriers Blog

FCC Issues Declaratory Ruling on TCPA
Posted July 16, 2015 by CUNA Advocacy

On July 10 the Federal Communications Commission (FCC) issued an Omnibus Declaratory Ruling and Order about the Telephone Consumer Protection Act (TCPA). One important component of this ruling is an exemption granted for certain free to-the-consumer autodialed calls by financial institutions.

This includes calls concerning: (1) transactions and events that suggest a risk of fraud or identity theft; (2) possible breaches of the security of customers’ personal information; (3) steps consumers can take to prevent or remedy harm caused by data security breaches; and (4) actions needed to arrange for receipt of pending money transfers.

The FCC noted in the ruling that restrictions imposed on the exemption requires that the messages include no marketing or advertising, and that each message include information regarding how to opt out of future messages. Additionally, the FCC’s Order requires that financial institutions make sure that messages will be delivered free of charge to consumers.

CUNA supported this exemption in a comment letter. Specifically, CUNA’s comment expressed support for relief that would permit communications concerning: (1) transactions and events that suggest a risk of fraud or identity theft; (2) possible breaches of the security of customers’ personal information; (3) steps consumers can take to prevent or remedy harm caused by data security breaches; and (4) actions needed to arrange for receipt of pending money transfers.

While the exemption generally is good news for credit unions, CUNA’s Compliance department is in the process of reviewing the Order to determine how much relief this provides to credit unions. For example, this ruling could still impact credit unions ability to communicate with member via phone or text message.

CUNA continues to closely monitor this issue and is prepared to advocate on credit unions behalf. Please check our COMP BLOG over the next few days for more analysis about how this Order will impact credit unions.