The Federal Trade Commission announced on Wednesday that it will amend its Telemarketing Sales Rule to address new forms of telemarketing fraud. The final rule bans all telemarketing firms from using four types of payment methods, including requesting remotely created checks or remotely created payment orders.
While ABA strongly supports the FTC’s intention to protect consumers from unscrupulous telemarketers, it noted that this rule goes further by blocking all telemarketers from using legal payment products. The final rule is an unauthorized effort to regulate the payment system and the banking industry’s execution of authorized customer transactions, the association noted.
In its 2013 comment letter, ABA suggested that the FTC’s resources would be better spent focused on identifying bad actors instead of blocking a payment product from an entire industry. The FTC’s effort may, in fact, harm consumer interests, by improperly prohibiting legitimate telemarketers from using RCCs. For more information, contact ABA’s Steve Kenneally.
