Thursday, November 7, 2013

Impact on Payday loans USA after TCP Act changes effective from 16th of October 2013

;
Impact of Telephone Consumer Protection Act on Call center industry:

The TCPA was passed into law in 1991. The Federal Communications Commission (“FCC”) is empowered to issue rules and regulations implementing the TCPA.  Among other things, the TCPA allows individuals to file lawsuits and collect damages for receiving unsolicited telemarketing calls, faxes, pre-recorded calls or auto dialed calls.

RESTRICTIONS ON THE USE OF AUTOMATED TELEPHONE EQUIPMENT:

It shall be unlawful for any person within the United States, or any person outside the United States if the recipient is within the United States

The term “automatic telephone dialing system” means equipment which has the capacity— 

(A) to store or produce telephone numbers to be called, using a random or sequential number generator; and (B) to dial such numbers

The term “telephone solicitation” means the initiation of a telephone call or message for the purpose of encouraging the purchase or rental of, or investment in, property, goods, or services, which is transmitted to any person, but such term does not include a call or message (A) to any person with that person's prior express invitation or permission, (B) to any person with whom the caller has an established business 
relationship, or (C) by a tax exempt nonprofit organization.

RESTRICTIONS ON THE USE OF AUTOMATED TELEPHONE EQUIPMENT.—

(A) to make any call (other than a call made for emergency purposes or made with the prior express consent of the called party) using any automatic telephone dialing system or an artificial or prerecorded voice— 
(i) to any emergency telephone line (including any “911” line and any emergency line of a hospital, medical physician or service office, health care facility, poison control center, or fire protection or law enforcement 
agency); 

(ii) to the telephone line of any guest room or patient room of a hospital, health care facility, elderly home, or similar establishment; or (iii) to any telephone number assigned to a paging service, cellular telephone service, specialized mobile radio service, or other radio common carrier service, or any service for which the called party is charged for the call; 

(B) to initiate any telephone call to any residential telephone line using an artificial or prerecorded voice to deliver a message without the prior express consent of the called party, unless the call is initiated for emergency purposes or is exempted by rule or order by the Commission under paragraph (2)(B); 
(C) to use any telephone facsimile machine, computer, or other device to send, to a telephone facsimile machine, an unsolicited advertisement to a telephone facsimile machine, unless— 

(i) the unsolicited advertisement is from a sender with an established business relationship with the recipient; 
(ii) the sender obtained the number of the telephone facsimile machine through— 
(I) the voluntary communication of such number, within the context of such established business relationship, from the recipient of the unsolicited advertisement, or 
(II) a directory, advertisement, or site on the Internet to which the recipient voluntarily agreed to make available its facsimile number for public distribution,

There is no “grand-fathering” provision in the new FCC rules for past practices, after October 16  2013 companies will need prior express written consent to send texts or make prerecorded calls even to existing users or subscribers. That may require companies to “refresh” consent from their existing users.