Vehicle Protection Association Applauds New FTC Robo-Calling Regulations

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Trade association for firms that market or service automotive service contracts pledges support to put an end to phone spammers.

The Vehicle Protection Association and its members believe in the continuing effort to protect consumer rights

The Vehicle Protection Association (VPA), an association formed to promote regulatory transparency, education, and accountability for marketing and servicing of automotive service contracts, today announced their strong support for new FTC regulations regarding prerecorded commercial telemarketing calls to consumers - commonly known as robo-calls.

Effective today, telemarketers are not allowed to make robo-calls to any consumer, even if they have done business with the person, unless the customer has given them written permission. The potential fine for violating the rule may range up to $16,000 per call.

The VPA supports the new FTC regulations and strongly condemns robo-calling and autodialing practices perpetrated by a handful of automotive service contract sellers.

Specifically, the VPA has spoken out against companies involved in the recent string of "robocalls" warning consumers of soon-to-expire auto warranties and urging them to sign up for new warranties. Federal regulators have filed lawsuits against these companies.

"The Vehicle Protection Association and its members believe in the continuing effort to protect consumer rights," said Larry Hecker, executive director of the VPA. "As such, we condemn any organization that misuses a legitimate channel of communication such as the telephone to violate the law, as has most recently occurred within the auto service contract space. We are pleased to see that the Federal Trade Commission has implemented strong new regulations that will help in the fight against warranty scams and telemarketing spam."

VPA To Launch New Initiatives to Protect Consumers

In response to the robo-calling campaigns, the VPA has launched several reform actions surrounding telemarketing, including the creation of an internal working group for industry reform, the adoption of industry standards, educational programs for automotive service contracts companies on regulatory requirements, the launch of a consumer education campaign, and the implementation of a compliance monitoring program.

These efforts, among others, will, the VPA believes, help to create clarity and transparency throughout the automotive service contract industry.

About the Vehicle Protection Association

The Vehicle Protection Association (VPA) is a not-for-profit trade association representing firms that are active in the automotive service contract industry. Members include service contract finance companies, marketers, administrators, insurers, and software providers. VPA currently has more than 50 members. The organization is committed to ensuring regulatory compliance among members, educating consumers on their rights, protecting consumers, and otherwise ensuring the integrity of the automotive service contract industry. For more information, visit http://www.vpanet.org.

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