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U.S. Supreme Court upholds CUNA’s position on Facebook v. Duguid case

The U.S. Supreme Court recently upheld the Credit Union National Association’s position in a case that may have affected credit unions who rely on technology systems to contact their members.

The Supreme Court ruled 9-0 in favor of CUNA’s position in Facebook v. Duguid Thursday, supporting a narrow scope for the Telephone Consumer Protection Act’s (TCPA) definition of an automated telephone dialing system (ATDS).

CUNA filed an amicus brief in the case, expressing concerns about the TCPA’s affect how some credit unions efficiently and effectively contact their members with important information regarding their accounts, including mandatory servicing calls and fraud alerts.

“Today’s decision is a major victory for credit unions and their members, whose ability to communicate important information was hampered by an overly broad definition of an ATDS,” said CUNA President/CEO Jim Nussle. “A clear, narrow interpretation of ATDS brings much needed clarity to both the regulatory and legal landscape.”

CUNA’s brief supported Facebook’s argument that consumer harms can be avoided by narrowly defining an ATDS to apply only to equipment that has the capacity to generate random or sequential numbers and to automatically call those numbers. The Court agreed, with no Justices filing dissenting opinions.

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The League of Southeastern Credit Unions & Affiliates represents nearly 300 credit unions throughout Alabama, Florida, and Georgia. It has a combined total of almost $200 billion in assets and 12.4 million members. LSCU provides advocacy, compliance services, education and training, cooperative initiatives, and communications.

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