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Webinar to Examine FCC’s TCPA Declaratory Rulings

Webinar on Pocket Watch Face with Close View of Watch Mechanism.

FCC Chairman Tom Wheeler’s TCPA “Fact Sheet” on forthcoming declaratory rulings issues should scare the heck out of any business using any telephone to reach potential, current or former customers. I believe the rulings will have a substantial impact on customer operations in the financial services industry.

I expect the Declaratory Rulings to touch a number of crucial issues driving TCPA litigation. So I’ve assembled a team of seasoned TCPA litigators to talk with you on Monday, June 22  June 29, on how these declaratory rulings will affect the risks of using telephone technology. Here are the hot issues I expect the ruling to cover:

Whose Consent?

Businesses that want to call a customer’s cellphone using an “automated telephone dialing system” (ATDS) need the prior express consent of the “called party.” The Fact Sheet hints that the proposal “clarifies and reiterates” the consent required to do so. It better, because there are at least three interpretations of the “called party” being bandied about — 1) the recipient of the call, 2) the “owner” or “subscriber” of the cellphone account or 3) a person who has authority of the subscriber to allow the number to be called. The last option involves a person who provides the cellphone number of another, such as a spouse, domestic partner or housemate, but does not use or subscribe to the cellphone herself.

The nature and extent of the necessary consent also remains in flux. We will sort through the forthcoming Declaratory Rulings to find any of the promised clarifications.

Will All Dialing Technology Be Subject to the TCPA?

If a business wants to contact its customer, it isn’t likely to do it using a phone system that randomly dials telephones. It is not going to use a phone system that sequentially dials numbers either. Businesses that leverage technology to increase the accuracy and integrity of their customer contacts will use a system that dials the telephones of its customers. But dialing technology that does not have the capacity to dial random or sequential numbers has still been found by some courts to fall within TCPA regulation. Other courts have disagreed, limiting TCPA regulation to systems that only have the present capacity to dial random or sequential numbers.

Chairman Wheeler’s Fact Sheet states that an ATDS must have the “capacity to dial random or sequential numbers.” The Chairman’s emphasis on the word “capacity” could mean that there will be exceptions for certain telephone technology as not all telephony systems have the capacity to dial random or sequential numbers. But that hope is muted by the Chairman when he goes on to say something very worrisome – the proposed rulings would prevent the use of “changes in calling technology design” or “calling from a list of numbers” that “skirt consumer consent.”

Calling from a list of numbers is probably the only way businesses can effectively telephone their customers. And there’s a lot of technology that can do this, even though they are not intended to dial “from a list of numbers.” Some systems have auto redial and can call back a telephone that was originally busy, without further intervention. Technology that schedules the time for the customer call and then makes the call is widely available. But if the proposed rulings are too expansive, this technology could pose a TCPA risk if the calls are deemed to be made “from a list of numbers.”

Revocation of Consent – A Pandora’s Box of Litigation Activity

Since the Third Circuit’s 2013 decision in Gager v. Dell Financial Services, permitting a consumer to revoke prior consent to receive calls made using an ATDS, it has become the current fashion for TCPA complaints to allege the plaintiff had revoked their consent sometime before the alleged offending calls began.

At this point, there is no consensus as to how a person can revoke their prior express consent to receive a phone call that was initiated by an ATDS. Some decisions have allowed it to be orally delivered, but others have required it to be in writing. The nature and content of the revocation also remains an unresolved issue.

The FCC Chairman’s Fact Sheet suggests we should expect a ruling on revocation that would allow consumers to revoke consent “in any reasonable way at any time.”

TCPA and Debt Collection Calls

We’ll examine the forthcoming rulings’ treatment of debt collection calls. Though it appears debt collection calls are not getting a pass from continued TCPA regulation, the webinar will address what impact the rulings may have on such calls.

A Very Limited Exception for “Urgent” Information Calls

ATDS calls that would alert a consumer to certain events – the Chairman noted fraud alerts and medication refills – may get a limited exemption. But the Fact Sheet made an ambiguous reference to these calls or texts as “free.” If this means the consumer cannot be charged for receiving the call or text, then the exemption is likely worthless.

Relief from Liability for Calling Wrong Numbers May be Limited

The risks of dialing a wrong number using an ATDS remain large and it is likely to stay that way unless the rulings add something beyond what is stated in the Fact Sheet. All we know now is that the ruling proposes to exempt “one call” to a wrong number. We’ll discuss whether the rulings require the caller to have some knowledge or reason to believe the number was not that of the called party.

Meet the Panel of Attorneys

Joining me on the webinar is Abbas Kazerounian , a noted TCPA plaintiff’s attorney. Abbas was class counsel in Arthur v Sallie Mae, et al, and Malta, et al. v Wells Fargo, two of the largest TCPA class settlements against financial services companies.

Also on the panel are Ernest Wagner , a principal with Maurice Wutscher LLP, and Shannon P. Miller , an associate attorney at the firm. Both regularly defend financial services companies in TCPA litigation.

This free webinar begins at 4 p.m. Eastern, 1 p.m. Pacific, and will last one hour. Space is limited.

Eventbrite - A First Look at the FCC’s TCPA Declaratory Rulings

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Donald Maurice provides counsel to the financial services industry, successfully litigating matters in the state and federal courts in individual and class actions. He has successfully argued before the Third, Fourth and Eighth Circuit U.S. Courts of Appeals, and has represented the financial services industry before several courts including as counsel for amicus curiae before the United States Supreme Court. He counsels clients in regulatory actions before the CFPB, and other federal and state regulators and in the development and testing of debt collection compliance systems. Don is peer-rated AV by Martindale-Hubbell, the worldwide guide to lawyers. In addition to being a frequent speaker and author on consumer financial services law, he serves as outside counsel to RMA International, on the governing Board of Regents of the American College of Consumer Financial Services Lawyers and on the Governing Committee of the Conference on Consumer Finance Law. From 2014 to 2017, he chaired the ABA's Bankruptcy and Debt Collection Subcommittee.

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