A Guide to Auto Dialer Compliance for Financial Services Professionals

Posted In | CRM | Help Desk | Auto Dialer | Financial Services

As a financial services professional, you may have already realized the benefits of using an auto dialer to reach out to your clients. However, compliance with various regulations surrounding their use is critical. This guide will help you understand the legalities involved and ensure that your business remains on the right side of the law.

 

What is an Auto Dialer?

An auto dialer is a type of software that automatically dials phone numbers from a list and then connects the call to a live person or a pre-recorded message. They are often used in the financial sector to contact clients for various reasons, such as notifying them of account changes, due payments, or marketing new services.

 

The Legal Landscape

There are significant regulations around the use of auto dialers, particularly in the United States. The Telephone Consumer Protection Act (TCPA) and the Telemarketing Sales Rule (TSR) are the primary regulations in place to protect consumers from unwanted calls. Both of these regulations place restrictions on when and how businesses can use auto dialers to contact consumers.

 

TCPA Compliance

The TCPA requires businesses to obtain prior express written consent from consumers before using an auto dialer to make calls or send text messages. Also, calls cannot be made before 8 a.m. or after 9 p.m. local time. Violations of the TCPA can result in significant fines, so it's essential to remain compliant.

 

TSR Compliance

The TSR applies to telemarketing calls and requires businesses to identify themselves, disclose the purpose of the call and refrain from misleading practices. The TSR also requires businesses to honor the National Do Not Call Registry and maintain a company-specific Do Not Call list.

 

Practical Steps for Compliance

Here are some practical steps to ensure your use of auto dialers remains compliant:
 

• Always obtain written consent before using an auto dialer to call or text.
   

• Respect the time restrictions for making calls.
   

• Ensure that your auto dialer has the capability to screen out numbers on the National Do Not Call Registry and your company-specific Do Not Call list.
   

• Provide clear and accurate information about the call's purpose and your identity.
   

• Keep records of consent and Do Not Call requests.
   

While auto dialers can be a powerful tool for financial service professionals, it's essential to ensure your practices are compliant with relevant regulations to avoid hefty fines and damage to your reputation. Always remember, when in doubt, consult with a legal professional to ensure you are following the correct procedures.