Crunch Time for Do Not Call Compliance
Are Financial Institutions Ready?
The time for complacency is long past, as enforcement of the National Do Not Call Registry will put financial institutions at risk.
The federal Do Not Call (DNC) registry goes into effect October 1st, and it is clear that many financial institutions are ill-prepared.
"DNC compliance requires sweeping changes in new business processes at banks, securities firms, and insurance carriers," says senior analyst Craig Weber, author of the report. "All home office and branch office telemarketing activities are covered under the law. Most firms will need to redesign some processes, implement new systems, and communicate their DNC policies to sales agents and call center staff very carefully. Those things simply are not going to happen overnight."
Weber notes that readiness for DNC varies widely between firms, despite the gradual introduction of DNC laws by states over the past decade. (See below.) "The difference now is that the federal law applies in all jurisdictions, and there is broad public and political support for DNC," Weber says. "We expect to see a high profile enforcement action by the FTC or FCC against a financial services firm in the near future."
The report summarizes key provisions of DNC laws (including potential fines), spotlights high risk areas, and outlines strategies financial institutions should consider to minimize the impact of DNC. It also includes a case study detailing the successful DNC program used by a large insurance carrier, Bankers Life & Casualty.