Financial Institutions


Uncertainty Remains for Financial Institutions’ Client Communications Under the TCPA

There has been an increase in lawsuits against financial institutions under the Telephone Consumer Protection Act (TCPA), and recent multimillion-dollar class action settlements raise significant concerns in the financial services industry regarding the efficacy of existing compliance protocols. One area of murkiness is the Federal Communication Commission’s (FCC’s) requirement that companies obtain “prior express written consent” for cellular telephone communications with customers. Specifically, financial services companies have requested that the FCC clarify issues concerning what constitutes “prior express written consent” and whether customers have the right to revoke consent after it has been provided.

The TCPA restricts telemarketing and limits the use of automatic dialing systems, artificial or prerecorded messages, texts and faxes used by businesses to advertise products and services to customers and collect outstanding debts. Pursuant to a change that took effect in October 2013, the TCPA requires written consent for most automated telemarketing communications. The TCPA specifically prohibits the use of an automated telephone dialing system or an artificial or prerecorded voice to make calls to cell phones without prior written consent of the party receiving the call.

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