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The U.S. Supreme Court this week is holding oral arguments for two cases that could have implications for credit unions: One challenging the definition of an automatic telephone dialing system (ATDS, or autodialer) under the Telephone Consumer Protection Act (TCPA), as well as one related to the single-director structure of the Federal Housing Finance Agency (FHFA).

Today, the court will hear arguments related to a class action lawsuit brought against Facebook that claimed the company's texts to consumers with security notifications violated the TCPA.  The issue the court will specifically consider is whether an ATDS "encompasses any device that can store and automatically dial telephone numbers – even if that device cannot store or produce them 'using a random or sequential number generator.'" Lower courts have been split on their interpretation of the definition.

NAFCU, in its advocacy with the FCC, has argued that devices should only be considered an ATDS if "it has the capacity to dial numbers without human intervention." If equipment is not being used as an ATDS, it should not be subject to the TCPA's authority. The association joined with several other organizations to file an amicus brief with the Supreme Court in September arguing against a broad interpretation of an autodialer.

NAFCU will continue to support a narrower definition of an autodialer and other reforms to the TCPA to ensure credit unions can contact their members regarding important, time-sensitive information without fear of frivolous litigation. The association is currently engaged with the FCC on call labeling and blocking issues resulting from the implementation of the TRACED Act and STIR/SHAKEN caller identification framework meant to target illegal robocalls, as well as exemptions under the TCPA.

Tomorrow, the Supreme Court will hear arguments in a lawsuit challenging the FHFA's leadership structure. The court agreed to hear the case shortly after it determined the CFPB's single-director structure was unconstitutional; NAFCU has long argued that the CFPB's structure should be reformed to a commission-based model to ensure transparency and accountability.

The court will also hear arguments about the constitutionality of the government-sponsored enterprises' (GSEs) net worth sweeps, under which the enterprises send part of their profits to the Treasury Department. NAFCU is supportive of a strong capital framework for the GSEs.

NAFCU will monitor these lawsuits as they are reviewed by the Supreme Court and keep credit unions informed of any decisions that could impact the industry.