Early this month the Supreme Court provided clarification regarding the parameters for the Telephone Consumer Protection Act (TCPA) in a unanimous ruling. This new interpretation rejects previous definitions of an automatic telephone dialing system (auto-dialer) and narrows the scope of applicability of the TCPA. The news impacts both, the use of auto-dialers and how the TCPA can be applied to modern communication technologies, such as SMS messaging, going forward.
The function of the TCPA is to protect consumers from unwanted calls by imposing the requirement of “prior express consent” for contact. The TCPA, established in 1991, was largely aimed at telemarketing, the use of random-fire auto dialers, and pre-recorded voicemails. As communication technologies have evolved the TCPA has been applied to newer technologies, such as SMS messaging, despite a lack of formal definition for many of these new means.
April 1st, the Supreme Court for the United States issued an opinion in FACEBOOK, INC. v. DUGUID ET AL, a case in which it had heard oral argument in December of last year. In the class-action lawsuit, Facebook is accused of misuse of a security feature that automatically sends text messages to phone numbers affiliated with an account when there is an attempted login from a new device. The feature repeatedly texted the plaintiff’s number though he did not have a Facebook account and he had no way to opt-out of the alerts. The court ruled in favor of Facebook stating that the TCPA was not violated because the auto dialer did not use “a random or sequential number generator.” The court also noted that it cannot rewrite the TCPA to cover modern technology, spurring speculation that the issue may be taken up by Congress in the near future.
Debt Collection, the TCPA, and Auto Dialers
For collection agencies like Professional Credit, which have processes in place for establishing consent and engaging consumers via technologies that don’t utilize “a random or sequential” number generator, the recent ruling is a win. Redefining auto dialer technologies relieves much of the confusion and burden created by the TCPA and ensures an easier road to compliance. It’s a win for consumers as well; it still provides protection from unsolicited robocalls but now makes it easier to receive important financial communications.
At Professional Credit, it is our goal to discover mutually beneficial financial solutions for our clients and consumers, much of which can be attributed to the insightful application of cutting-edge technologies. To learn more about Professional Credit technology and our collections processes here.