A number of trade groups from across the financial services industry, including ACA International, have petitioned the Federal Communications Commission to delay the enactment of a rule related to the Telephone Consumer Protection Act that is scheduled to go into effect next month. Meanwhile, the FCC has launched a deregulation initiative and is seeking comment on all existing FCC rules that may create unnecessary regulatory burdens.
What’s happening?: The new TCPA rule, set to take effect on April 11, would mandate that a consumer’s revocation of consent for telephone calls or text messages be treated as an absolute prohibition on all communications from businesses, including those related to the consumer’s accounts. This means that if a consumer opts out of receiving marketing calls or texts, they would also stop receiving important account-related messages, such as payment reminders or account updates.
Why it matters:
- Business impact: Industry groups such as AFSA, ACA International, and the American Bankers Association have raised concerns that the rule could create operational challenges for businesses. Revoking consent for one type of communication could unintentionally block all communications, including those related to legitimate business purposes.
- Consumer concerns: The rule could be especially problematic for consumers with multiple accounts at a creditor, as revoking consent for one account could result in an inability to receive necessary communication across all their accounts.
Industry response: In response to these potential issues, trade groups have called for a one-year delay in the rule’s implementation. They argue that the new provisions are too broad and could negatively impact both consumers and businesses. The groups contend that consumers may still want to receive critical messages related to their accounts even if they no longer wish to receive marketing messages.
What’s next?: The FCC has opened a public comment period through April 11, to gather feedback on rules that could impose unnecessary regulatory burdens. In this process, AFSA plans to submit comments requesting a delay and emphasizing the negative impact the new rule could have on communication strategies.
- This move comes as the FCC has launched a deregulation initiative, seeking input on all existing rules that may no longer be necessary. The agency is asking for public feedback on how existing rules, including those affecting TCPA communications, could be modified or repealed to alleviate regulatory burdens.
