Collector - September 2016 - (Page 40)
CREDITORS
What Creditors Need to Know About the TCPA
The TCPA's requirements, especially after the FCC's 2015 Declaratory Ruling and Order, create more
rules for creditors and increase the need for communicating with third-party debt collection partners.
By Katy Zillmer
T
he Telephone Consumer Protection
Act has remained largely
unchanged since it was passed
in 1991, but orders from the Federal
Communications Commission in recent
years have increased the requirements for
making calls. As a result, creditors are
subject to the same rules as their thirdparty debt collection partners.
What does this mean for you? It's
important for creditors and third-party
collectors to be on the same page about
TCPA requirements and for creditors to
know what calls they can lawfully make and
to what number.
ACA International Vice President and
General Counsel Robert Föehl outlined these
provisions for creditors during a session at
the ACA International Spring Forum and
Expo in March.
"The FCC said the calls [placed] by thirdparty debt collectors on behalf of the creditor
are treated as if the creditor called the
consumer itself," Föehl said. "The creditor
could be on the hook for that if the debt
collector violates the TCPA."
Although creditors need to obtain
prior express consent from consumers for
autodialed informational calls to wireless
numbers, the FCC's 2015 TCPA Order
included exemptions from this requirement
for certain informational calls, such as
calls about fraud alerts, security breach
notifications and healthcare-related
matters. However, the FCC also put specific
restrictions on the calls and related messages
creditors must comply with, "including
being devoid of any marketing and debt
collection content, and containing a way to
opt out of future messages," Föehl said.
It's important for creditors to
understand the FCC's conditions on these
calls, including:
* Creditors calling consumers on their
wireless number must state their name
and contact information at the beginning
of the call and not discuss marketing or
debt collection information;
* Calls have to be one minute or less or
text messages have to be 160 characters
or less; and
* Creditors cannot leave more than three
messages per event over three days and
have to offer consumers a way to opt
out of receiving the calls and messages.
Creditors must honor opt-out requests
immediately.
"The good news is you might be
able to take advantage of some of these
exemptions, but the bad news is you've
got to go through all these conditions
and make sure that everything is buckled
down," Föehl said. "If you miss one of
these conditions, you lose your exemption
and you're subject to liability."
In its 2015 order, the FCC clarified
that there is no distinction between
telemarketing calls and informational
calls. It's also important for creditors
to understand service providers'
telephone number acquisition and TCPA
compliance processes.
TCPA LAWSUITS SHOW A
YEAR-OVER-YEAR INCREASE
238
MAY 2015
349
MAY 2016
SOURCE: WEBRECON
40
ACAINTERNATIONAL.ORG
http://www.ACAINTERNATIONAL.ORG
Table of Contents for the Digital Edition of Collector - September 2016
Upfront
Industry News
Best Practices
FYI
Collection Tips
5 Ways to Get Electronic Payments Right
Making the Connection
Curious About Amicus Curiae?
Calendar
Honor Roll
Small Talk
Know the Score
What Creditors Need to Know About the TCPA
ACA Industry Advancement Support Helps Secure Victory for Collection Industry in FDCPA Case
Compliance
ACA SearchPoint
Last Word
Collector - September 2016
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