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ARTICLE · 09 MARCH 2016

FCC Circulates Draft Rule To Implement TCPA Exception For Government-Backed Loans

We will continue to monitor legislative developments and regulatory implementation of the TCPA in order to identify and advise on potential risks.

United StatesConsumer Protection

As we previously reported, section 301(b) of the Bipartisan Budget Act of 2015 permits an exception to the Telephone Consumer Protection Act of 1991 for calls and text messages "made solely to collect a debt owed to or guaranteed by the United States." The  TCPA generally prohibits calls made and text messages sent utilizing artificial or prerecorded voices to any telephone line, without the prior express consent of the called party, or calls using automatic telephone dialing systems ("ATDS") to wireless telephone numbers.

The 2015 bill amended the TCPA to allow the use of an ATDS and prerecorded messages for calls and text messages "made solely to collect a debt owed to or guaranteed by the United States."  The Federal Communications Commission was tasked with implementing the revised statute by August 2, 2016, and also was given the ability "to restrict or limit the number and duration of calls" made to wireless telephone numbers utilizing the new exception.

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