Telephone Consumer Protection Act

Although it seems like we live in an age of endless robo-calls, the Telephone Consumer Protection Act (TCPA) is a law that exists to protect Americans from unwanted phone calls. The TCPA covers all forms of communication through telephone lines, which include phone calls, robo-calls, and faxes.

When a cold call is made by a financial professional, several requirements must be met. First, the agent must check two separate do-not-call lists. There’s a national do-not-call list, which is maintained by the federal government. If the potential customer’s name is on the list, the financial professional may not make the phone call. Secondly, they must also check the firm’s do-not-call list, which is internally maintained by the firm. Again, if the customer is on this do-not-call list, the agent may not make the call.

If the customer’s name isn’t on either do-not-call list, the agent must ensure they’re calling at a reasonable hour. The TCPA allows calls to be made anytime between 8:00am and 9:00pm in the time zone of the potential customer. If a phone call is made outside of these hours, the agent is technically breaking the law.

If the prospect is reached on the phone, the financial professional must disclose a few pieces of information. They must state their name, the firm’s name, and the phone number or address they’re calling from. If the customer doesn’t want to talk and requests that they be placed on the do-not-call list, the representative must place them on the firm’s do-not-call list. Unless the customer calls back themselves and does business with the firm, they cannot be recontacted.

There are some exceptions to these rules. TCPA rules do not apply to any customer that has an existing relationship with the firm (defined as doing business with the firm in the past 18 months). The same applies if the customer specifically requests for a call to be made to them. Additionally, non-profit organizations or phone calls not relating to business are exempt from TCPA rules.