Caller ID Law Could Impact CUs
Credit unions that engage in legitimate debt collection practices could still find their actions restricted by the Federal Communications Commission.
The agency has until June to write rules to implement a law passed by Congress aimed at cracking down on businesses that cause caller identification services to translate "misleading or inaccurate" caller information aimed at defrauding or wrongfully obtaining something of value.
If the FCC doesn’t carve out an exemption, credit unions and others could find themselves in trouble if the caller ID displays an abbreviated form of the caller’s legal name rather than the caller’s complete legal name.
Violations are punishable by a civil penalty of up to $10,000 for each violation or three times that amount for each day of a continuing violation. Penalties for continuing violations can’t exceed $1 million. Violators could also face criminal fines or imprisonment.