Frank Keating, American Bankers Association President and CEO, released the following statement concerning text alerts:
“Today, ABA took another important step to protect consumers, filing a petition asking that the FCC remove barriers to sending time-sensitive information to customers when their accounts may be in jeopardy. In the filing, we request that data breach and fraud alerts be exempt from outdated regulatory restrictions on automated calls and texts to mobile devices.
“Effective fraud prevention requires the earliest possible contact with the customer. Automated text and voice message calls to mobile phones can reach people wherever they are, enabling customers and financial institutions to react promptly to stop fraudulent transactions and respond to data security breaches. With about 40 percent of the nation’s households now ‘wireless only,’ the ability to send these automated notifications to mobile phones is critical. Unfortunately, the rules were designed for a time when nearly everyone had a landline. Since that is no longer the case, it is dangerous not to update the standards.
“Nearly 60 percent of consumers prefer to be contacted on their mobile phones concerning potentially fraudulent activity, and more than one-in-three prefer text notifications. Put simply, outdated regulatory restrictions mean that these efficient communications channels are used far less often than consumers would prefer. We’re hopeful the FCC will give our petition prompt consideration, and look forward to working with them going forward.”
The American Bankers Association is the voice of the nation’s $15 trillion banking industry, which is composed of small, regional and large banks that together employ more than 2 million people, safeguard $11 trillion in deposits and extend more than $8 trillion in loans.