{"id":420719,"date":"2023-12-14T16:13:24","date_gmt":"2023-12-14T21:13:24","guid":{"rendered":"https:\/\/www.housingwire.com\/?p=420719"},"modified":"2023-12-15T17:15:15","modified_gmt":"2023-12-15T22:15:15","slug":"fccs-newly-adopted-lead-gen-rules-could-accelerate-lawsuits-against-lenders","status":"publish","type":"post","link":"https:\/\/www.housingwire.com\/articles\/fccs-newly-adopted-lead-gen-rules-could-accelerate-lawsuits-against-lenders\/","title":{"rendered":"FCC\u2019s newly adopted lead gen rules could accelerate lawsuits against lenders"},"content":{"rendered":"\n<p>The <strong>Federal Communications Commission<\/strong> (FCC) \u2014 the government <a href=\"https:\/\/www.housingwire.com\/tag\/regulatory-compliance\/\" target=\"_blank\" rel=\"noreferrer noopener\">regulatory<\/a> body overseeing communications across a wide variety of media including radio, telephone cable and the internet \u2014 <a href=\"https:\/\/docs.fcc.gov\/public\/attachments\/DOC-399082A1.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">adopted<\/a> a new series of rules on Wednesday designed to crack down on controversial <a href=\"https:\/\/www.housingwire.com\/tag\/real-estate-leads\/\" target=\"_blank\" rel=\"noreferrer noopener\">lead generation<\/a> methods, including \u201crobocalling\u201d and \u201crobo-texting.\u201d<\/p>\n\n\n\n<p>The new rules as adopted could bring a wave of lawsuits against those using the so-called \u201clead gen loophole,\u201d which includes <a href=\"https:\/\/www.housingwire.com\/tag\/lenders\/\" target=\"_blank\" rel=\"noreferrer noopener\">mortgage lenders<\/a>, insurers and law firms.<\/p>\n\n\n\n<p>These new rules will \u201cfurther protect consumers from scam communications by directly addressing some of the biggest vulnerabilities in America\u2019s robo-text defenses and closing the \u2018lead generator\u2019 robocall\/robo-texts loophole,\u201d according to an announcement issued Wednesday by the FCC. \u201cThe new rules allow blocking of \u2018red flagged\u2019 robo-texting numbers, codifies do-not-call rules for texting, and encourages an opt-in approach for delivering email-to-text messages.\u201d<\/p>\n\n\n\n<div class=\"wp-block-housingwire-piano-member\"><div id=\"membership-content\">\n<p>There are three core provisions for the new rules. They will \u201callow the FCC to \u2018red flag\u2019 certain numbers, requiring mobile carriers to block texts from those numbers,\u201d the FCC said. \u201cThe rules also codify that Do-Not-Call list protections apply to text messaging, making it illegal for <a href=\"https:\/\/www.housingwire.com\/tag\/marketing\/\" target=\"_blank\" rel=\"noreferrer noopener\">marketing<\/a> texts to be sent to numbers on the registry.\u201d<\/p>\n\n\n\n<p>They will also close what the FCC calls the \u201clead generator loophole,\u201d through which \u201cunscrupulous robocallers and robotexters inundate consumers with unwanted and illegal robocalls and robotexts,\u201d the FCC explained.<\/p>\n\n\n\n<p>\u201cThe new rules make it unequivocally clear that comparison shopping websites and lead generators must obtain consumer consent to receive robocalls and robotexts one seller at a time \u2013 rather than have a single consent apply to multiple telemarketers at once,\u201d the FCC added. This change will disrupt the current way potential homebuyer leads are bought and sold.<\/p>\n\n\n\n<p>Finally, the FCC has proposed additional steps for new action, including soliciting the public for additional action it can take to combat unwanted robocalls for consumers. A new notice published by the FCC \u201cproposes additional blocking requirements when the FCC notifies a provider of a likely scam text-generating number,\u201d it explained.<\/p>\n\n\n\n<p>\u201cThe Commission will also seek further comment on text message authentication \u2013 modeled on the successful implementation of STIR\/SHAKEN protocols for phone calls \u2013 including on the status of any industry standards in development,\u201d the FCC said.<\/p>\n\n\n\n<p>The new notice also proposes \u201crequiring, rather than simply encouraging, providers to make email-to-text services opt-in,\u201d the FCC explained.<\/p>\n\n\n\n<p>Experts who spoke to <a href=\"https:\/\/www.housingwire.com\/tag\/reuters\/\" target=\"_blank\" rel=\"noreferrer noopener\">Reuters<\/a> speculated before the rules\u2019 adoption that they could allow consumers to bring a wave of lawsuits against those taking advantage of the so-called loophole, with one attorney saying the rules would create a \u201ctarget-rich environment\u201d in which to sue companies that may rely on such leads under the Telephone Consumer Protection Act (TCPA).<\/p>\n\n\n\n<p>\u201cBusinesses that use leads will need to be especially careful to ensure that the contacts they use are in compliance with the new law,&#8221; said Andrew Perrong, who has filed dozens of lawsuits both as a plaintiff and as an attorney representing clients suing over unwanted calls, Reuters <a href=\"https:\/\/www.reuters.com\/legal\/government\/new-fcc-rule-lead-generation-expected-spur-wave-lawsuits-2023-12-12\/\" target=\"_blank\" rel=\"noreferrer noopener\">reported<\/a>.<\/p>\n<\/div><\/div>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The FCC adopted a new set of rules on Wednesday that looks to disrupt how potential homebuyer leads are bought and sold.<\/p>\n","protected":false},"author":7007,"featured_media":417946,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1692,2020],"tags":[248665,2100,268236,3079],"coauthors":[239905],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.5 (Yoast SEO v21.7) - 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He got his start as a professional writer talking about the entertainment industry, but transitioned to the B2B arena by providing industry news to market researchers. 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