ARLINGTON, Va.–NAFCU has told the Federal Communications Commission that its recent decision will “make it more difficult for credit unions and other financial institutions to contact their members about identity theft or data breaches."
In a letter to the FCC, NAFCU Senior Vice President of Government Affairs and General Counsel Carrie Hunt said the agency’s Declaratory Ruling and Order to clarify its interpretations of the Telephone Consumer Protection Act (TCPA) will have unforeseen consequences for credit unions.
“NAFCU recognizes that the Commission adopted an exemption for ‘free end user calls’ made by financial institutions, specifically for the purpose of: (1) calls intended to prevent fraudulent transactions or identity theft; (2) data security breach notifications; (3) measures consumers may take to prevent identity theft following a data breach; and (4) money transfer notifications,” Hunt wrote in the comment letter. “However, the Order creates technical questions that may be impossible for a credit union to resolve, such as whether or not the member will be charged for such texts or calls by their plan provider, or if they will count against their plan limits. NAFCU believes that the FCC should provide more flexibility to the prescriptive requirements for financial institutions using this exemption, especially because this exemption meant to apply in exigent circumstances to protect consumers.”
Hunt and NAFCU also expressed its concern about the “FCC’s expansive treatment of the term ‘automatic telephone dialing system’ (auto-dialers). The FCC’s Order defines auto-dialers to include broadly any equipment even if it ‘lacks the ‘present ability’ to dial randomly or sequentially,’ but can be modified to provide those capabilities. This interpretation is very troublesome since it remains unclear what type of technology is actually covered. NAFCU and our members believe that the vague standard for what qualifies as an auto-dialer, and the vague definition of commercial purpose will ultimately stop credit unions from making important communications to their members about their financial accounts for fear of violating the regulation and possibly incurring substantial liability.”
Hunt wrote that NAFCU also has serious concerns about the Commission’s “antiquated regulations” that create distinctions between mobile and residential phones.