Prior to the amendment, these calls would have been prohibited absent the recipient’s prior express consent if placed to a cellular telephone and if they were made by an automatic telephone dialing system or included an artificial or prerecorded voice message. Now, such calls, if “made solely pursuant to the collection of a debt owed to or guaranteed by the United States,” no longer require the prior express consent of the recipient.
In addition to the exemption applicable to calls made to cellular telephone numbers, the Act also exempts certain calls to residential telephone lines. The statutory requirement that a caller obtain the called party’s prior express consent before making any call to a residential line if an artificial or prerecorded voice delivers a message is no longer applicable to calls made “solely pursuant to the collection of a debt owed to or guaranteed by the United States.” Likewise, these calls no longer require the called party’s prior express consent. While these residential calls were likely exempt from the TCPA’s prior express consent requirements prior to the enactment of the Act pursuant to regulations issued by the Federal Communications Commission (FCC), it is now clear that no specific consent is required in order to make such residential telephone calls.
The Act also mandates that the FCC prescribe regulations implementing the amendments to the TCPA, in consultation with the Department of Treasury, within nine months from the date of its enactment. The FCC has authority to restrict or limit the number and duration of these calls when made to cellular numbers; however, no such authority is granted for residential numbers.
In addition to possible FCC fines, the TCPA poses significant risk from plaintiffs’ counsel, as it provides for a private right of action, statutory damages of $500 per violation, and treble damages for willful violations. With the TCPA’s potential for significant liability, these amendments are welcome news for servicers and collectors of debts owed to or guaranteed by the United States.
