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Federal court allows banks to use robocalls

The U.S. Court of Appeals for the District of Columbia Circuit ruled March 16 that banks are exempt from a Federal Communications Commission regulation limiting robocalls, allowing companies to use automated telemarketing equipment to issue "time-sensitive" phone calls as long as consumers can opt out.

The court clarified that under the Telephone Consumer Protection Act, companies like banks and healthcare companies can use robocalls to provide "vital" and timely information to consumers.

The 2015 rule was created to limit the volume of robocalls that consumers receive. But the federal court argued that the 2015 rule failed to clarify the types of calling equipment that fall within the restrictions, adding that "ordinary calls" from a smartphone could meet the "unreasonably expansive interpretation of the statute." The court decision vacated the rule's restriction on calls made to a phone number previously assigned to a person who had given consent to robocalls but since reassigned to a non-consenting person.

In a statement, the American Bankers Association applauded the decision and said the decision provides more breathing room for financial institutions to send suspicious activity alerts and data security breach notifications, which allows "customers to receive information they need and want, in the way they want to receive it."