WASHINGTON (8/4/15)--CUNA’s latest Advocacy Update video details CUNA advocacy efforts around a declaratory ruling issued by the Federal Communications Commission (FCC) concerning the Telephone Consumer Protection Act (TCPA) and the National Credit Union Administration’s member business lending (MBL) proposal.
In the video, CUNA Senior Directors of Advocacy Leah Dempsey and Lance Noggle break down each proposal, including certain parts of interest to credit unions.
The FCC issued the ruling last month on the TCPA, which includes an exemption granted for certain free autodialed calls from financial institutions to consumers. This exemption includes calls concerning transactions suggesting fraud, potential security breaches, mitigation steps following a breach and actions needed to arrange receipt of pending money transfers. However, the conditions that must be met to qualify for this exemption are difficult, if not impossible for credit unions to meet, including that they must be free of charge.
While CUNA supports the concept of preserving consumers’ rights to privacy on their cell phones, the FCC’s order goes far beyond the scope or purpose of the TCPA, which incidentally was enacted before cell phones and mobile devices were even commonly used in 1991. In addition to the many conditions that must be met to qualify for the exemption, CUNA takes issue with several other aspects of the ruling including the expansion of what is considered an autodialer, and ambiguity about how consumers can revoke their consent for such calls.
CUNA has outlined all of their concerns in a letter to NCUA.
“While the NCUA does not actually have jurisdiction over the TCPA, we’re hoping their consumer protection office will intervene on credit unions’ behalf because this law has the potential of not only creating substantial compliance burdens for credit unions, but it could also subject them to frivolous TCPA-related litigation,” Dempsey said, adding that CUNA will continue advocating for credit unions on this issue.
Noggle provided an update on the NCUA’s MBL proposal, including a summary of the rule itself, and information on how credit unions can submit comments on the proposal to the agency, as well as to CUNA.
“There’s one specific point we think credit unions should be interested in, and it’s the one negative thing we’ve heard about the most,” he said, noting that the lack of guidance is causing concern.
“It could make it harder for credit unions to comply with this rule, as they don’t have specific requirements in the rule, these will be moved to guidance. And we have not yet seen the guidance,” Noggle added.
Comments on the MBL proposal are due to CUNA by Aug. 24, and to the NCUA by Aug. 31.