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Pay Pal Changing its Ways to Comply with the TCPA

On Behalf of | Jun 23, 2015 | Consumer Protection

The Telephone Consumer Protection Act (“TCPA”) is the law that was enacted to protect consumers from the ever growing trend of receiving robo calls, prerecorded messages and texts messages made by telemarketers and debt collectors. PayPal, the giant company that provides a service enabling consumers to pay, send money, and accept payments without revealing their financial details, is protecting itself from violating the TCPA.  Earlier this month Pay Pal introduced a new agreement for consumers to sign allowing the company to contact them by using robo calls and sending text messages to its users.

Pal Pal’s agreement allows the giant company to contact its customers using the number they provided and additional numbers available meaning Pal Pal would be able to contact a consumer at home, work or on a cell phone.  This agreement allows Pal Pal to contact consumers regarding their account but also to send out offers and promotions.  Initially when signing up for a Pay Pal account there was no opt-out clause, however, after numerous complaints, the company now claims it will provide an opportunity for consumers to opt out of automated and pre-recorded calls.

The first complaints about the company’s new policy, set to be put into effect next month, was when a consumer requested to opt out of receiving this type of communication and he was provided with information on how to close his account with Pay Pal instead.  In light of this conduct, consumer advocates are requesting new laws be put into place demanding that when consumers request to opt out of receiving robo calls, auto-dialers and text messages, they not be forced to cease their contracts with a company.  The TCPA and the Fair Debt Collection Practices Act (“FDCPA”) sets parameters on companies contacting consumers using auto dialers and mass text messages to protect consumers who don’t want to receive this type of communication and advocates demand that Pal Pal should be treated no differently under the law.

If you believe your rights have been violated under the TCPA or the FDCPA and would like to speak with a licensed attorney, contact SmithMarco, P.C. for a completely free case review.

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