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Credit Agreements Provide Cushion for Collectors From TCPA

FORT WORTH, Texas — The FCC is still making changes to the Telephone Consumer Protection Act, but in the meantime, lenders can protect themselves by making sure there’s consent to an autodialer call in the credit agreement, John Redding, a partner at Buckley Sandler LLP, told attendees at this week’s PowerSports Finance 2018.

He suggests finance manages look at their documents. He said an autodialer consent may already be written into the loan agreement, but, if not, they should write it in.

Currently, the FCC is redefining aspects of the TCPA that were determined to be outdated by the U.S. Court of Appeals for the District of Columbia. Essentially, the TCPA’s definition of an autodialer is a device that has the capacity to store, produce, or randomly dial telephone numbers. This definition was deemed too broad for a modern world where everyone with a smartphone technically has an autodialer in their pocket.

However, even if the consent is in the credit agreement, Redding cautions that the consent doesn’t necessarily travel to a third-party collector should a consumer’s loan go into default. “Does that authorization travel to that third-party collector?” he asks. “Still a bit of an open question.”

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