Since October 2013, new FCC regulations have been in effect, making prior consent to phone calls and text messages mandatory for insurance agents and insurance carriers. It’s important to know how TCPA laws apply and how can you protect yourself against hefty fines ($500 to $1500 per call or text). If  you do not comply, you may come up against consumer class action lawsuits. These days, consumers can easily download apps that allow users to submit claims against cold callers within seconds of receiving an unwanted call, text or recording. In addition to calls SMS text messages, fax machines and artificial or prerecorded voice messages are now limited too.

Many carriers have call centers which use autodialing for efficiency but which may conflict with TCPA laws. Review the laws and your business operations if you’ve been dinged for noncompliance.

The same goes for lead generation companies. SmartFinancial, however, presents compliance language when customers fill out forms, giving consent to phone calls and texts.

What Is Required for Compliance with TCPA Laws?

It’s a good idea to get familiar with the laws and know that TCPA compliance is required even when it’s a third-party generated lead. You need to also have proof of the consent consumers have given to the third-party company. You must also have proof of consent with each channel. Speak with your lead generation companies to get persuasive proof.

Unfortunately, many carriers still think that the TCPA compliance laws don’t pertain to them or they don’t think they are in threat of being litigated. Between July 2015 and the end of 2016, the number of TCPA cases has grown by over 46%. Damages and penalties are also on the rise in more recent years.

Another misconception is that new clients or prospects are the ones submitting claims, but there are many instances of long-time clients complaining about calls, texts and faxes during servicing). That is why it’s important for you to have clear consent about using any and all means of communication. If you only have an okay for emails and send a text, you could easily be penalized with a fine.

What Can I Do to Prevent Claims of TCPA Non-compliance?

Make sure that your lead generation company has clear and prominently placed consent language so that consumers are aware that they are giving consent to be called/texted. Keep tabs on consumers who revoke consent and make sure they are no longer being contacted.

You will have the burden of proving that a clear disclosure was provided by you or any third-party lead generator. It’s also recommended that you keep each customer’s written consent for 5 years. For instance, if these phone numbers were generated with a form, the form must have visible and clearly written consent information. It’s also advised that you gather the consumer’s computer IP address.

What Happens if I’m Non-compliant with TCPA Laws?

The cost of being non-compliant is high, especially if you’re a repeat offender. Going to court alone can cost thousands of dollars. There’s also no way to quantify how your status may affect your reputation. Plus, if a class-action suit is brought against your company, your penalty could cost millions of dollars. As for the range of fees for non-compliant calls, they start at $500 and usually max at $1500 even though the judge may allow additional damages and fees. The biggest hurdle is that these numbers add up, especially for carriers with campaigns of thousands or millions of calls/texts. All you need is a visible and clear form of consent to stay compliant. If a case goes into litigation, courts must determine if the defendant “willfully” or “knowingly” violated the TCPA.

Don’t just assume you’re being compliant if your lead source has not given you documentation on how they comply with TCPA laws.You will also need this information if your case does go to court.

How Being Compliant with TCPA Makes Sense

The whole point of TCPA is to mitigate compliance risk and avoid litigation. It’s important to keep tabs on your sales, marketing and even legal teams to avoid any mishaps. The laws surrounding TCPA are to ensure that you have the right strategy in place so you can avoid litigation. Both the cost and risk of litigation are high.

If your company makes thousands of calls each day, it makes documenting the customer’s compliance even more challenging. There are helpful solutions, like the Trustedform Solution, which verifies the origin of Internet leads.

General provisions of TCPA

• If a consumer has given a phone number to a creditor for use in normal business communications, it’s considered consent.
• TCPA restricts telemarketing and advertisements via telephone call before 8 am or after 9 pm.
• TCPA restricts calls made to telephone numbers on the national do-not-call (DNC) list.  
• Whenever a consumer gives his/her phone number on a website requesting car insurance quotes or whatever it may be, this is considered implied consent.

Exemptions Include

• Calls made manually and which do not contain a pre-recorded message.
• Calls made regarding emergencies.
• Calls that are not commercial in nature.
• Calls made for commercial reasons but do not include advertising and are not considered telemarketing calls.
• Calls made by or on behalf of tax-exempt nonprofit organization.
• Calls with a health care message made by or on behalf of a “covered entity” or “business associate” of the covered entity are exempt from TCPA laws but must follow the HIPAA privacy rule.
• Calls made unknowingly to a wireless number that’s been ported from wireline service and is a voice call (not pre-recorded).
• Calls that are only intended to give information.
• Research and survey calls and bank account fraud alerts are exempt from TCPA.

Restrictions

• Unanswered telemarketing calls must be disconnect after at least 15 seconds or 4 rings.

Pre-recorded Telephone Messages or Artificial Calls of Any Kind

• The message must clearly state the name of business, individual or entity in the beginning of the message.
• The message must clearly state the phone number of business, individual or entity (not the auto-dialer number and not the number of the prerecorded message that made the call.)
• There should also be an automated voice or keyboard based way of opting out of the calls and getting placed on a do-not-call (DNC) list.

In Contacting Leads, What if I Call Out-of-state Regularly?

You are responsible to follow the laws of both states when you make an interstate call. For intrastate calls, if the state law is weaker than the federal law, you must comply with the federal law and vice versa.

What About B2B Calls?

Businesses to business calls are not covered under the TSR or TCPA.

For more information on topics like this, join us at Lead Generation World Denver 2020