The Bipartisan Budget Act of 2015 that was signed into law by President Obama and became effective as of November 2, 2015, included the creation of an exemption from the Telephone Consumer Protection Act (TCPA) for federal loan servicers.
Calls made by automatic phone dialing systems or to cellular phones are now allowed without the recipient’s prior express consent if they are “made solely pursuant to the collection of a debt owned to or guaranteed by the United States.”
In addition, the Act exempts federal loan servicers from having to obtain prior express consent for automatic or pre-recorded calls made to residential phones.
Despite its enactment as a deterrent to telephone solicitation calls, the application of the TCPA has been extended to debt collection calls as well, with significant civil penalties for businesses found to be in violation. In 2013, the Federal Communications Commission (FCC) issued new rules that increased the level of consent required for these calls, requiring “prior express written consent” for automatic dialed calls or pre-recorded calls.
In June 2015, the FCC further clarified the TCPA to include text messages and added additional prohibitions against automatic phone dialing systems and pre-recorded calls for wireless and landline phones.
The Act now gives a partial reprieve from TCPA liability to certain businesses that are engaged in collecting a debt owed to or guaranteed by the United States. The Act requires that the FCC, in consultation with the Department of the Treasury, establish regulations for implementation of the amendment within nine months, specifying that the FCC has the authority to “restrict or limit the number and duration of calls made to a telephone number assigned to a cellular telephone service to collect a debt owed to or guaranteed by the United States.” Those restrictions or limitations do not apply to residential phone calls.
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