FCC offshore call center proposal will not advance fight against fraud
The Federal Communications Commission (FCC’s) offshore call center proposal would not help reduce fraud and is likely beyond its authority. Joining with other organizations in Tuesday’s joint letter to the FCC, America’s Credit Unions notes support for anti-spoofing efforts against illegal robocalls, while also outlining opposition because the “proposed new regulations will not advance the fight against fraud; therefore, we do not support it.”
The proposal would place certain requirements on telecommunications company call centers in other countries. This includes a limit on the percentage of customer service calls made from or answered at these call centers, a mandatory disclosure at the beginning of calls, a right for the consumer to have the call transferred to a U.S.-based call center, and more.
“These requirements will not stop criminal operations’ use of illegal call spoofing to perpetrate fraud; instead, they would regulate ordinary customer service communications of legitimate businesses, including routine account-servicing and fraud-response interactions involving our members,” the letter reads.
It also notes the Telephone Consumer Protection Act (TCPA) does not give the FCC the authority to impose restrictions on businesses that use foreign call centers; the FCC does not have the authority under section 251(e) of the Communications Act to regulate calls placed from call centers located abroad of non-telecommunications companies; and the U.S. Supreme Court's "major questions" doctrine confirms that the FCC lacks the authority to restrict offshore call centers.
The organizations also emphasize that financial institutions are already subject to extensive federal consumer protection, privacy, and supervisory requirements, making the proposed restrictions unnecessary.
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