WASHINGTON—CUNA this week plans to ask NCUA to address the Telephone Consumer Protection Act of 1991 in an effort to help CUs more effectively communicate with their members.
The TCPA restricts telephone solicitations and governs communications when using an auto-dialer and contacting consumers on their cell phone. Enforcement of the TCPA falls under the jurisdiction of the FCC. CUNA plans to send a letter to NCUA asking the agency to step in as it seeks modernization of the rule.
Leah Dempsey, senior director of advocacy and counsel, explained that on July 10 the FCC released a ruling that impacted the TCPA and credit unions’ communications with members.
“And while CUNA supports protecting consumer privacy rights and financial information, this ruling goes far beyond the scope of the TCPA, which was enacted in 1991 before the common use of cell phones,” said Dempsey. “This order disregards consumers’ preferences to use new technologies and makes it more difficult for credit unions to communicate with their members about fraud and data breaches, and other account information.”
In the order the FCC recognized the importance of receiving calls from financial institutions and actually provided an exemption that CUNA has supported. However, conditions in the order make it “nearly impossible” for FIs to still make these calls, Dempsey said.
“For example, the calls have to be free of charge, so consumers cannot use any of their minutes or their plans to receive these calls, which is virtually unworkable,” said Dempsey.
She added there are several other “problematic” issues with the FCC’s ruling that, overall, add compliance burden to credit unions and can also make CUs targets for frivolous class-action TCPA litigation.
“Moreover, we believe credit union members want to receive important communications from their credit unions and we are hoping that NCUA, while it does not have jurisdiction over this issue, will intervene to make sure they can receive them,” Dempsey said.
CUNA plans to continue to seek relief for credit unions on this issues and will continue to work with Congress, according to Dempsey.