ARM Industry Trade Groups Join Many Others in TCPA Reform Letter to FCC

A coalition of dozens of national associations and business groups Monday sent a letter to the Federal Communications Commission (FCC) urging the regulator to address issues that have been raised in numerous petitions concerning the modern application of the Telephone Consumer Protection Act (TCPA).

The letter notes that when the TCPA was passed in 1991, wireless phones were a luxury afforded by only a few, as usage costs – including receiving calls – here prohibitively high. As such, the 1991 law included a prohibition on the use of “automatic telephone dialing systems” to contact cell phones.

But today, 90 percent of Americans own a mobile phone and 58.8 percent of U.S. households are “wireless-only.” In addition, cost for actual usage is very low, with many calling plans featuring unlimited minutes or no charge for incoming calls.

The growth in mobile phone uptake, and the lower cost for use, is an important point, as the letter notes that the technology enables businesses to communicate with their customers in ways unforeseen in 1991.

“Compared to 1991, organizations today — including many small businesses –use efficient, automated technologies to place a variety of time-sensitive, non-telemarketing calls,” the letter stated. “Unfortunately, due to a lack of clarity under the TCPA, these important communications are increasingly being chilled, organizations making the calls are increasingly being subjected to frivolous litigation, and consumers are increasingly missing important communications.”

The groups point to a huge increase in consumer-initiated TCPA lawsuits over the past several years, as the law has not been changed and the FCC’s rules and regulations have not kept pace with the explosive growth in mobile technology.

The letter is ultimately asking for clarification from the FCC on a number of issues that have been raised in petitions from various industry groups. Generally, the call is for the FCC to allow the use of autodialing technology to reach cell phones for non-telemarketing purposes, which would include debt collection calls.

The list of groups signing the letter is extensive, and includes the major trade associations in the ARM industry: ACA International, DBA International, and the National Association of Retail Collection Attorneys (NARCA). Other financial associations include the Consumer Bankers Association and several student loan-focused groups.

The coalition also features groups across a wide range of industries and interests, headed by the U.S. Chamber of Commerce, and including the National Restaurant Association, the National Retail Federation, the National Cable & Telecommunications Association, and the state creditor bar associations of at least 20 states.