FTC AMENDS TELEMARKETING SALES RULE’S DO-NOT-CALL PROHIBITION
The FTC amended its Telemarketing Sales Rule (TSR) to require sellers and telemarketers to obtain national do-not-call registry data and purge registered telephone numbers from their call lists no more than 31 days (not 30 days as proposed in the Notice of Proposed Rulemaking) prior to making a telemarketing call. The TSR had required telemarketers and sellers to take such action on a quarterly basis. Businesses subject to the TSR will need to revise their procedures in order to comply with the more frequent scrub schedule, which will become effective on January 1, 2005.
HOUSE PASSES BILL LIMITING INDUSTRIAL LOAN COMPANY BRANCHING
On March 18, 2004, the House of Representatives overwhelmingly passed the Financial Services Regulatory Relief Act of 2004 (H.R. 1375), which if enacted, will severely limit the ability of nonbank companies to offer financial services to their customers outside of their home state. The bill, which includes a large number of provisions intended to clarify, conform and make changes to existing law, amends the Federal Deposit Insurance Act to prohibit industrial loan companies that are controlled by commercial firms from acquiring, establishing or operating branches in states other than their home state. The bill generally defines commercial firm as an entity in which at least 15 percent of its annual gross revenues are derived from activities that are not financial in nature or incidental to a financial activity. The bill contains a grandfather clause, however, that would exempt an ILC from the above prohibition if it became an insured depository institution before October 1, 2003 or pursuant to an application for deposit insurance that was approved by the FDIC before such date. The bill has been referred to the Senate Committee on Banking, Housing, and Urban Affairs.
Mike Tomkies and Chuck Gall