Top Five Compliance “Must Dos” When You Get Home Tomorrow Michael Thurman Thurman Legal

The Usual Disclaimers This presentation is for informational and educational purposes only. It is not intended to provide legal analysis or advice on any specific issues and should not be relied upon. Please consult with an attorney who is authorized to practice law in the applicable jurisdiction regarding specific questions and issues.

Number Five #5

Number Five #5 – Make sure you have written permission from your Clients and Prospects BEFORE you phone them!

TCPA actions have become a growth industry for plaintiffs’ attorneys!

TCPA actions have become a growth industry for plaintiffs’ attorneys! “Professional plaintiffs”

TCPA actions have become a growth industry for plaintiffs’ attorneys! “Professional plaintiffs” Usually filed as class actions

TCPA actions have become a growth industry for plaintiffs’ attorneys! “Professional plaintiffs” Usually filed as class actions Statutory damages - $500 to $1,500 per violation

TCPA actions have become a growth industry for plaintiffs’ attorneys! “Professional plaintiffs” Usually filed as class actions Statutory damages - $500 to $1,500 per violation Depending on the number of calls, can range from a nuisance to a huge potential liability!

What is the “TCPA”?

What is the “TCPA”? The Telephone Consumer Protection Act

What does the TCPA Require? What is the “TCPA”? The Telephone Consumer Protection Act What does the TCPA Require?

What does the TCPA Require? What is the “TCPA”? The Telephone Consumer Protection Act What does the TCPA Require? Express written consent BEFORE calling or texting a cell phone using an automated telephone dialing system (“ATDS”).

What does the TCPA Require? What is the “TCPA”? The Telephone Consumer Protection Act What does the TCPA Require? Express written consent BEFORE calling or texting a cell phone using an automated telephone dialing system (“ATDS”). Prohibits any calls to “Do Not Call”-registered numbers!

What does all this mean to me?

What does all this mean to me? Know where the numbers you are dialing come from!

What does all this mean to me? Know where the numbers you are dialing come from! Your Website: Must be able to show you have express consent to call.

What does all this mean to me? Know where the numbers you are dialing come from! Your Website: Must be able to show you have express consent to call. Lead generators or other sources: Must be able to show you have express consent to call.

What does all this mean to me? Know where the numbers you are dialing come from! Your Website: Must be able to show you have express consent to call. Lead generators or other sources: Must be able to show you have express consent to call. Screen numbers against the DNC register or have written consent to call even if they are on the DNC list.

Number Four #4

#4 – Tell your clients if you record or monitor their phone calls! Number Four #4 – Tell your clients if you record or monitor their phone calls!

Twelve U.S. states prohibit phone monitoring or recording without consent from both parties!

Twelve U.S. states prohibit phone monitoring or recording without consent from both parties! In California, violation is a crime and allows for a private right of action:

Twelve U.S. states prohibit phone monitoring or recording without consent from both parties! In California, violation is a crime and allows for a private right of action: Class actions

Twelve U.S. states prohibit phone monitoring or recording without consent from both parties! In California, violation is a crime and allows for a private right of action: Class actions Statutory penalties – up to $5,000

Simply need to disclose before recording to avoid liability:

Simply need to disclose before recording to avoid liability: At the beginning of the call.

“This call may be monitored or recorded for quality assurance purposes

Simply need to disclose before recording to avoid liability: At the beginning of the call. In fully disclosed and accepted terms of use on your website.

Simply need to disclose before recording to avoid liability: At the beginning of the call. In fully disclosed and accepted terms of use on your website. In your agreement.

Number Three #3

#3 – Make sure your website terms and conditions are enforceable! Number Three #3 – Make sure your website terms and conditions are enforceable!

Important website terms:

Important website terms: Client’s consent for phone calls (TCPA)

Important website terms: Client’s consent for phone calls (TCPA) Acknowledgement that calls may be recorded

Important website terms: Client’s consent for phone calls (TCPA) Acknowledgement that calls may be recorded Acknowledgement of your Privacy Policy

Important website terms: Client’s consent for phone calls (TCPA) Acknowledgement that calls may be recorded Acknowledgement of your Privacy Policy Agreement to arbitrate disputes

Important website terms: Client’s consent for phone calls (TCPA) Acknowledgement that calls may be recorded Acknowledgement of your Privacy Policy Agreement to arbitrate disputes Other important Terms of Use

Can you demonstrate your client saw and agreed to the terms of your agreement?

X

Number Two #2

Number Two #2 – Work on your strategic licensing plan for the states where you market!

State licensing requirements:

State licensing requirements: Register to do business in each state

State licensing requirements: Register to do business in each state Means you have to register your business entity - corporation or LLC or whatever - in ALL of the states where you operate

State licensing requirements: Register to do business in each state Means you have to register your business entity - corporation or LLC or whatever - in ALL of the states where you operate Identify an agent in each state for service of process

State licensing requirements: Registration to do business in the state State business licenses

State licensing requirements: Registration to do business in the state State business licenses For example, Nevada

State licensing requirements: Registration to do business in the state State business licenses Telemarketing licenses

State licensing requirements: Registration to do business in the state State business licenses Telemarketing licenses 32 states require registration or licensing

State licensing requirements: Registration to do business in the state State business licenses Telemarketing licenses 32 states require registration or licensing 20 states require bonds

State licensing requirements: Registration to do business in the state State business licenses Telemarketing licenses 32 states require registration or licensing 20 states require bonds Applications/fees/bonds

State licensing requirements: Registration to do business in the state State business licenses Telemarketing licenses Debt Relief licenses

State licensing requirements: Registration to do business in the state State business licenses Telemarketing licenses Debt Relief licenses Applications/Fees/Bonds

State licensing requirements: Registration to do business in the state State business licenses Telemarketing licenses Debt Relief licenses Credit Services Organizations Act licenses

State licensing requirements: Registration to do business in the state State business licenses Telemarketing licenses Debt Relief licenses Credit Services Organizations Act licenses Applications/Fees/Bonds

Not going to get all of these done when you get home…

Not going to get all of these done when you get home… But you need to be thinking about your strategy for how you are going to address them!

Number One #1

Number One #1 – Add disclosures to your website that Clients - and Regulators - can’t miss!

Besides advance fees and licensing, inadequate disclosures are the #1 regulatory issue:

Besides advance fees and licensing, inadequate disclosures are the #1 regulatory issue: No affiliation with the DOE or its servicers.

Besides advance fees and licensing, inadequate disclosures are the #1 regulatory issue: No affiliation with the DOE or its servicers. Services provided are available for free through the DOE or its servicers.

Besides advance fees and licensing, inadequate disclosure are the #1 regulatory issue: No affiliation with the DOE or its servicers. Services provided are available for free through the DOE or its servicers. Not debt relief services.

How can you ensure your clients – and regulators - will see your disclosures?

How can you ensure your clients – and regulators - will see your disclosures? Make them unavoidable!

Compliance need not be expensive - but it does require focus!

Compliance need not be expensive - but it does require focus! Take a few minutes to focus on these compliance issues when you return home!

Questions?! Michael Thurman Thurman Legal 626-399-6205 www.thurman-legal.com michael@thurman-legal.com