On August 11, 2016, the FCC released long awaited behavioral rules and definitions clarifying Congress’ newly passed exemption for calls relating to government-backed debts. As part of Congress’ 2015 Bipartisan Budget Act, they wrote themselves (the government) a TCPA exemption from a number of the autodialer and consent rules, including the rule requiring express consent for the calling of cell phones on an autodialer.
As part of that exemption, Congress ordered the FCC to write behavioral rules to further define and flesh out the new statutory exemption. Congress gave the FCC a deadline of 9 months from the passing of the legislation containing the exemption.
Earlier this month, the FCC released a 66-page Order containing the new rules. The FCC has a mandate to create administrative regulations and orders to interpret and clarify the TCPA. Among other things, the August 11 Order: defines the meaning of “covered calls;” defines “solely to collect a debt;” provides limits on the volume of exempt calls; provides time of day (“curfew”) rules; clarified that the calls may be made by the creditor or its contractor; and provides opt-out rights and affirmative disclosure requirements.
Government contractors who call on delinquent government-backed debt, such as certain student loans and mortgages, for example, should carefully review this Order to determine if they are affected. Covered contractors may safely take advantage of this exemption so long as the follow the new behavioral rules. Interestingly however, some of the Order’s provisions are contradictory to a recent FCC Declaratory Ruling exempting the government and its authorized agents from the TCPA in an even broader way. The July, 2016 Broadnet ruling appears to have provided greater rights for government callers generally and it is not yet certain how the two FCC actions may be reconciled.