By ABIA Outside Counsel Chrys Lemon and Adam Maarec, McIntyre & Lemon, PLLC
The Federal Trade Commission (FTC) recently conducted an enforcement action against a telemarketing vendor for violations of the Telemarketing Sales Rule (TSR) in connection with the use of prerecorded messages. While banks and insurance activities subject to state regulation are not governed by the TSR, telemarketers working for banks are subject to enforcement of the TSR by the FTC or, perhaps, the Consumer Financial Protection Bureau (CFPB). But banks and insurance companies are subject to comparable telemarketing regulations from the Federal Communications Commissions (FCC), which are largely consistent with and operate in tandem with the TSR. The FTC’s latest enforcement action puts additional pressure on telemarketing vendors to ensure “prior express written consent” to receive prerecorded messages exists. But is your bank or bank-owned insurance agency doing enough to ensure you and your vendors meet the latest telemarketing requirements, including the use of prerecorded messages?
To learn more about the Telemarketing Sales Rule, read our compliance brief prepared just for bank-owned agencies that are members of ABIA. If you are having trouble logging on or you are with a member that is not a bank, please contact us and we will email you a copy.
ABIA members may access a wealth of compliance information – including our flagship Compliance Handbook on our new compliance page. If you need help logging in, please contact us and we will be happy to assist you.