Proposed FCC Change to TCPA would Negatively Impact CA Industry

[Jen23514]

http://www.insidearm.com/go/arm-news/propo...ct-arm-industry

 

The Federal Communication Commission (FCC) recently proposed stricter guidelines on telephone communications that would set debt collection efforts back decades, according to people familiar with the proposal.

 

Most in the industry agree that the communication habits of young adults have made it harder for account receivable management professionals to correctly identify and contact Generation Y consumers (“American Debtor Pool Undergoing Massive Demographic Shift,†Jan. 28). Debt collectors would like nothing more than to be allowed to freely use new communications platforms -- such as cell phones, text messages and social networks -- to contact the younger demographic.

 

But a recent proposal from the FCC removes a longstanding exemption for the ARM industry for certain rules governing the use of communication technology.

 

Last month, the FCC released a Notice of Proposed Rulemaking to amend the Telephone Consumer Protection Act (TCPA). The FCC said it wants current TCPA rules to conform to the Federal Trade Commission’s (FTC) recently amended Telemarketing Sales Rule (TSR).

 

The new TSR, which became effective in October 2008, bars the use of prerecorded telemarketing calls without a consumer’s written consent, and it requires prerecorded calls to include future opt-out options.

 

Adam Peterman, ACA International's government affairs director, said creditors and debt collection agencies currently are exempt from the FTC’s Telemarketing Sales Rule. But he said if the FCC’s proposed rule under the TCPA is enacted as currently proposed, the industry will suffer.

 

"If it goes through it would have a very negative impact on our industry," Peterman said, adding that the FCC's proposed change to the rule implementing the TCPA does not exempt creditors and collection agencies.

 

The FCC has yet to publish the proposed amendments to the rule in the Federal Register requesting public comment. But Peterman expects it will be published soon. He said ACA is prepared to respond.

 

Among other things, ACA wants to make sure that the FCC amendment to TCPA rule doesn't prohibit calls to wireless numbers and land lines in some cases, and that new regulation doesn't lead to an increase in consumer lawsuits against collection agencies.

 

“The rule is unclear enough right now that companies are getting sued. We need some clear guidance that relieves us of the ligation problem," he said.

 

Jerry Greenblatt, president of El Cajon, Calif.-based collection agency Inland Capital Services, told insideARM that his firm tries to avoid calling cell phones so consumers won’t incur a charge and the firm doesn’t violate the Fair Debt Collection Practices Act (FDCPA). But their contact information files are beginning to include more cell numbers.

 

“Most people are converting to cell phones and there will be fewer land lines in the future,†Greenblatt said, and speculated that 60 percent to 70 percent of the communication by young people is done though text messaging. “The industry needs to address it and be proactive on the issue. I don’t want to see legislation requiring us to go out and skip trace every number we have to verify if it is a land line or cell phones before we call it. That would make it impossible to collect.â€

 

“When we talk to our consumers we ask for the best number to reach them as part of our information update procedures,†Greenblatt said. But he worries that their efforts may not be enough to protect his firm if the consumer moves to a different time zone, making contact-time violations under the FDCPA more likely.

 

“I would like to have it addressed before the industry faces multiple lawsuits on the issue,†he noted.

 

Peterman said ACA knows that the industry wants more clarification on the use of modern-day mediums to contact debtors. However, now is not the time to proactively seek changes to laws governing the industry, he said.

 

"We recognize that the FDCPA is woefully obsolete and needs modernization reforms. On the other hand, there are some pretty punitive changes that consumer groups have on their agenda and with the political climate being so turbulent right now, we are best served to sit prone, ready to respond, at least through the election cycle," Peterman said.

 

However, Peterman said ACA has learned that Congress may seek changes to the FDCPA. He said ACA will be prepared to respond with its proposal for changes to FDCPA.

 

“We are waiting for Congress to take it up on its own accord, and we will respond in kind,†he said.

 

Editor's Note: insideARM and ACA International will be hosting a free Webinar on the legislative and regulatory environment in the ARM industry at EXPO 3.0, February 16, 2010. To learn more about the event and to register, please visit http://www.insidearm.com/expo/.

[nlocker]

CA's already break every law imaginable.

 

Why should they fear changes to the TCPA? It's just more laws they won't hesitate to ignore.

[x-large debt]

If you are going to call me at 5:00AM when am travelling say in California, I am going to be very pissed off and that for sure it is not going to get you paid.

 

Change the way "paid" collections are reflected on a credit report from a negative to a positive and much of the trouble with "FDCPA, FCRA, etc" and other violations will go away seriously that is the most arcaic thing in the world. Statistics show most people want to make good on their debts, old and new. They DO NOT want to sue, but will if they are constantly being bullied by the industry, cornered and punished for things that are done and over with.

[vetswife]

agreed, I'd rather see a score increase, or at least stay the same as an incentive to pay.

 

I'd also like to seethe jerkoffs be forced to send out every initial letter cmrr

 

 

how many people here can raise their hand and say theyve seriously never seen something till they pulled their credit reports because they mailed it to an address from 10 yrs ago? I mean...how long is your mail forward supposed to last.

[GEORGE]

100% of CA's LIE 102% of the time

[Jen23514]

How many people here can raise their hand and say theyve seriously never seen something till they pulled their credit reports because they mailed it to an address from 10 yrs ago? I mean...how long is your mail forward supposed to last.

 

This was the most frustrating part when I started.

[radi8]

If you would like to submit a comment to the FCC, the link to do so is here:

http://fjallfoss.fcc.gov/ecfs/upload/display?z=m1stw

The proceeding number is 02-278

Your comments must be in a Word attachment.

 

If you'd like to read comments others have made, and follow the rulemaking's progress:

http://fjallfoss.fcc.gov/ecfs/proceeding/view?name=02-278

 

Full text of the Notice of Proposed Rule Making:

http://hraunfoss.fcc.gov/edocs_public/atta...FCC-10-18A1.pdf

 

 

FCC is one of the few governmental agencies that actually does read & consider public comments.

[Jen23514]

Thanks Radi.

[JunkBuyersWorstNightmare]

If you are going to call me at 5:00AM when am travelling say in California, I am going to be very pissed off and that for sure it is not going to get you paid.

 

I had one to do that repeatedly.

[Jen23514]

If you would like to submit a comment to the FCC, the link to do so is here:

http://fjallfoss.fcc.gov/ecfs/upload/display?z=m1stw

The proceeding number is 02-278

Your comments must be in a Word attachment.

 

If you'd like to read comments others have made, and follow the rulemaking's progress:

http://fjallfoss.fcc.gov/ecfs/proceeding/view?name=02-278

 

Full text of the Notice of Proposed Rule Making:

http://hraunfoss.fcc.gov/edocs_public/atta...FCC-10-18A1.pdf

 

 

FCC is one of the few governmental agencies that actually does read & consider public comments.

 

a bump for anyone in a letter writing mood today

[Jen23514]

ttt