WASHINGTON–CUNA and the Independent Community Bankers of America have sent a letter to Congress stating that credit unions and small banks have been plagued by the July 2015 Telephone Consumer Protection Act (TCPA) order from the Federal Communications Commission (FCC).
With the House Subcommittee on Communications and Technology and the Senate Commerce Committee are hosting oversight hearings on the FCC this week, the two trade groups said that FIs have been “plagued” by the FCC’s Telephone Consumer Protection Act (TCPA) Omnibus Declaratory Ruling and Order (Order).
“The onerous guidance this Order provides for contacting consumers on their cellphones, and the unworkable exemption for financial institutions have left many credit unions and community banks stymied in their ability to communicate with their own members and customers,” the letter reads. “Perhaps most problematic, the overly broad expansion of what is considered an autodialer has left many small financial institutions unable to even determine whether the calling device they use could be considered an autodialer. Since often these financial institutions cannot bear the draconian liability of non-compliance associated with the unlimited amount of statutory class action damages associated with the TCPA, they are forced to abandon or limit some of their communications with consumers. For example, some financial institutions have been forced to discontinue sending text messages despite the fact that many consumers prefer this method of communication.”
CUNA and the ICBA added that “such communications are precisely the type of information consumers want and need immediately, so that they have the ability to stop fraudulent activity or to address outstanding account balances before fees or other penalties are imposed. Ultimately, the July 2015 TCPA Order places consumers at risk of not receiving this important account information in a timely manner. Instead the biggest beneficiaries of the FCC’s July 2015 TCPA Order are plaintiffs’ lawyers seeking exorbitant fees.”
The groups are urging Congress to work with the FCC on “common-sense reforms” to the “outdated TCPA enacted in 1991 in order to reflect today’s many forms of communication.”