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FCC EXPECTED TO ISSUE PROPOSED RULE ON USE OF AUTODIALERS
- The Federal Communications Commission is expected to issue an advanced notice of proposed rulemaking today that would allow companies collecting federally guaranteed debt, such as student loans, to use autodialers to call the mobile phones of consumers. According to some published reports, the rule will still give consumers the right to revoke consent to be contacted on their cell phones, would prohibit collectors from using autodialers to contact friends or family members of consumers, and would limit collectors to making three calls per month. It will be interesting to see how the FCC deals with the rule, since it has clearly stated its opinion that using autodialers to contact consumers’ mobile phones is something that should not be allowed.
INDUSTRY, ADVOCATES REACT TO CFPB’S PROPOSED RULE ON ARBITRATION
- Companies will abandon the use of arbitration in resolving legal issues with customers if the Consumer Financial Protection Bureau moves forward and adopts the rule it proposed yesterday that seeks to significantly limit the use of the process in favor of allowing consumers to file and participate in class-action lawsuits. It would no longer make financial sense for companies to subsidize the arbitration process if they are still exposed to class-action lawsuits, one lawyer said. Consumer advocates are very much in favor of the ban on arbitration, as are lawyers who represent consumers.
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The Daily Digest is sponsored by TCN, a leading provider of cloud-based call center technology for enterprises, contact centers, BPOs, and collection agencies worldwide.
