The Federal Communications Commission (Federal Communications Commission) has released a Notice of Proposed Rulemaking (NPRM) outlining a series of actions aimed at offshore call centers, with a strong focus on improving customer service standards and reducing robocall scams that originate outside the United States.
The proposal, led by FCC Chairman Brendan Carr, is scheduled for a vote at the agency’s March 26 open meeting. If approved, it will be published in the Federal Register and opened for public comment.
Scope of the Proposed Rules
The proposed rules would apply broadly to:
- Telecommunications service providers
- Commercial Mobile Radio Service (CMRS) providers
- Interconnected VoIP providers
- Cable television providers
- Direct broadcast satellite (DBS) providers
- Affiliates of covered providers
The NPRM also suggests the possibility of direct or indirect implications for other sectors, including financial services. The FCC is seeking input on how to address situations involving highly sensitive consumer interactions, such as:
- Password resets or account credential changes
- Multi-factor authentication requests
- Transactions requiring bank account details
- Credit card information exchanges
- Social Security number disclosures
Additionally, the FCC is evaluating whether expanded oversight is warranted under existing federal laws, including the Telephone Consumer Protection Act.
Industry Background
The FCC notes that for decades many U.S. companies have shifted customer support and call center operations overseas. Today, nearly 70% of American firms reportedly outsource at least one business unit, reflecting how widespread offshore operations have become.
Key Proposal Areas
The proposal includes specific on:
- Customer Service Standards
- Call Center Onshoring
- Security and Privacy Concerns
- Illegal Robocalls
Customer Service Standards
The FCC is proposing several consumer-facing requirements:
- Call center staff would need proficiency in American Standard English to reduce communication barriers.
- Customers would be informed at the beginning of a call if it is handled by an offshore center.
- Upon request, consumers could be transferred to a U.S.-based call center.
The Commission is also seeking comment on whether providers should publicly report call center performance metrics, such as wait times and issue resolution rates.
Call Center Onshoring
The agency is exploring options to encourage more customer service operations to return to the United States. Potential measures include:
- Capping the percentage of customer service calls handled at offshore facilities
- Assessing the FCC’s legal authority to regulate foreign call centers
- Considering whether rules should extend beyond voice calls to cover digital communications such as live chat, text messaging, and email handled abroad
Security and Privacy Concerns
The NPRM highlights concerns that offshore centers may present elevated data security risks when handling sensitive consumer information. The FCC references reports alleging that individuals working in foreign call centers have improperly accessed customer data to facilitate criminal activity.
Illegal Robocalls
Foreign call centers are also identified as a major source of illegal robocall scams targeting U.S. consumers.
To address this, the FCC proposes:
- Blocking or labeling illegal robocalls originating overseas before they reach American consumers
- Exploring deterrence mechanisms that would raise the cost of unlawful international calls
Potential approaches include tariff structures or bond requirements for overseas-originated traffic. The FCC is also considering whether similar safeguards should apply to non-voice communications.
Potential Industry Impact
The NPRM signals a possible shift toward expanded oversight of offshore operations used by U.S. communications providers, emphasizing consumer protection, data security, and scam prevention.
While the proposal directly targets specific communications providers, the FCC’s broad line of questioning indicates that compliance expectations could extend to a wider range of U.S. businesses that rely on third-party call center support.
If adopted, the rules could introduce significant operational changes and new compliance obligations for covered providers and their business partners.
Public Comment Process
Following the March 26 vote, the NPRM will be published in the Federal Register and opened for stakeholder input.
- Initial comments will be due 30 days after publication
- Reply comments will be due 60 days after publication
The public comment period will give industry participants, consumer groups, and other stakeholders an opportunity to influence how the FCC finalizes its approach.
Author: Jennifer Evancic
Jennifer.Evancic@ResourceManagement.com
Jennifer Evancic is a third-party auditor valued by creditors and large organizations for her knowledge in call monitoring within the collections industry. With meticulous attention to detail and a firm grasp of regulatory requirements, she ensures compliance with clients’ criteria and state and federal regulations.
Jennifer audits collections calls, ensuring they meet client-specific criteria and comply with regulations, providing valuable insights and maintaining industry standards.
Beyond her auditing responsibilities, Jennifer takes the lead in organizing and facilitating monthly call calibrations. These sessions serve as a collaborative forum where clients and their vendors come together to discuss call monitoring results and address any findings or areas for improvement. Jennifer’s guidance fosters open communication and ensures alignment between clients and vendors, driving continuous improvement in collections practices.
Jennifer stays up-to-date with compliance and industry best practices by participating regularly in peer meetings, regulatory updates and industry webinars. This keeps her informed about emerging issues and ensures she remains a knowledgeable leader in collections compliance.
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