For Information Purposes Only; Not Intended as Legal Advice
SMS/Texting is a powerful communication tool for financial institutions however, many institutions lack the clarity in gathering active consent and managing consumer preferences. Most consumers check their texts within 15 minutes and this immediacy is allowing text messaging to become one of the most popular ways to communicate their with bank or credit union. In fact, 9 out of 10 consumers prefer using text messaging to interact with businesses, including financial institutions. Making sure you have a plan to handle privacy, to distinguish between informational vs. marketing messages and to process for opt-outs is key.
The Federal Communications Commission’s Telephone Consumer Protection Act (TCPA) consent-revocation rule was initially set to take effect on April 11, 2025. Yet, financial institution trade associations successfully lobbied for a one-year reprieve, citing the complexities in implementing revocation processes across multiple communication systems. For example, opting out of certain marketing messages via text could inadvertently halt other automated communications, including important transactional messages.
The Challenge and Opportunity
Financial institutions often use separate systems for different messaging purposes, making the coordination of opt-in and opt-out statuses cumbersome. The reprieve until April 2026 offers an opportunity for banks and credit unions to refine their TCPA strategies, educate customers, and streamline processes. And, of course, the TCPA’s more general provisions remain in place.
Don’t Wait to Get Started. Make Your TCPA Consent-Revocation Implementation Efficient and Smooth.
To stay ahead, use this year to build robust systems and practices for compliance. Here’s how:
- Audit Systems and Processes
Review all communication channels, consent records, and privacy practices. Distinguish messaging programs (e.g., transactional vs. marketing) to ensure a “Stop” opt-out applies only to the intended program. - Enhance Response Times
Adapt internal workflows now to meet the across-the-board revocation requirements as soon as practicable as a matter of best practices or, at a minimum, within a reasonable time not to exceed 10 business days following receipt of a request. If you can, leverage automation where feasible. - Empower Contact Centers
Train your customer service teams to handle privacy requests confidently. Equip them with tools to log preferences across all platforms. - Proactive Customer Communication
Develop clear, concise messaging to educate consumers about their rights and your commitment to privacy. Conduct outreach campaigns to capture opt-in preferences early to ensure consumers aren’t missing out on your communications to have a better customer or member experience.
Why Proactive Outreach Matters
By initiating proactive communication with your customers or members, financial institutions can enhance the customer experience while aligning with compliance requirements. Outsourcing these efforts with Vericast’s Contact Center solution can save time and resources, delivering superior service across SMS, calls, print, and digital channels. We would be happy to share our success stories with you.
Ready to optimize your contact center? Explore Vericast’s checklist of 10 essential questions to ask for seamless outsourcing.
Note: The National Law Review breaks the ruling down in further detail, but of course consult your own attorney for legal advice.
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