TCPA Reform
The use of modern technology is critical for the ability to contact consumers in a timely and efficient matter. Often if a consumer is put
Enacted nearly 30 years ago, the TCPA and the FCC’s regulations have failed to keep up with numerous technological developments.
Key Points
- ACA members contact consumers exclusively for non-telemarketing and legitimate business reasons.
- Enacted 30 years ago, the TCPA and the FCC’s regulations have failed to keep up with numerous technological developments.
- Several other regulators have urged the FCC to provide more clarity surrounding the TCPA.
- The use of modern technology is critical for the ability to contact consumers in a timely and efficient matter. Often if a consumer is put on notice of a debt sooner and earlier in the collection process, their chances improve of resolving that matter favorably.
- As a result of this action, ACA International filed a lawsuit in the D.C. Circuit challenging several aspects of the FCC 2015 Order, which made TCPA compliance more confusing and onerus. In March 2018, the D.C. Circuit struck down some of the most egregious aspects of the 2015 Order, including the FCC’s definition of an autodialer and the FCC’s reassigned number one-call safe harbor.
- The FCC recently required an opt-out for nonmarketing prerecorded calls to residential landlines and limited such calls to three calls per 30 days. These new restrictions remain wholly unnecessary today and in many instances would prevent some of the most vulnerable consumers from receiving important, time-sensitive information.
- Yet, because of unclear requirements for how the ARM industry can use modern, and even notso- modern, technologies to communicate with consumers, the industry often remains unable to provide critical financial information in a timely and effective manner.
- However, since the 2018 D.C. Circuit decision, there has been conflicting case law throughout the country regarding how legitimate businesses can contact consumers.
Unintended Consequences of the TCPA
As of December 2016, the majority of American homes (50.8%) report being wireless-only.
100
%
TCPA litigation has consistently increased year-after-year. Between 2010 and 2016 there was a 1,273% increase in litigants; between 2015 and 2016 alone the total number of litigants increased 32%.
100
%
U.S. Department of Treasury on TCPA Limitations
“Current implementation of the TCPA constrains the ability of financial services firms to use digital communication channels to communicate with their customers despite consumers’ increasing reliance on text messaging and e-mail communications through their mobile devices.”
Small Business Administration on TCPA Confusion Regarding Consumers and Small Business Owners
“In an environment where fifty to seventy [percent] of a business’ customers might only be reachable by mobile phone, it is important that the FCC move quickly to establish clear guidance to small business compliance without depriving customers of required or desired communications.
Percentage of 25-29 Year-Olds Living in a Wireless-Only Household
%
Percentage of Individuals Aged 65 and Over with a Landline
%