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FCC takes first step to fining mortgage company for violating telemarketing rules

WASHINGTON-The Federal Communications Commission Thursday took the first step toward fining California Pacific Mortgage for violating the telemarketing rules by calling people whose names and telephone numbers were on the Do-Not-Call Registry.

“This is a landmark enforcement step-the first FCC action to enforce our new national do-not-call rules. This citation demonstrates our resolve to ensure that consumers are not bothered by unwanted, intrusive calls to their homes. Do-not-call enforcement is the FCC’s top consumer-protection priority and we, along with our partners at the Federal Trade Commission, will continue to be vigilant in this area on behalf of the American public,” said David Solomon, chief of the FCC’s Enforcement Bureau.

Since CPM is not an FCC licensee, the commission could not fine CPM without first issuing a citation. “California Pacific Mortgage may be subject to a monetary forfeiture if it continues to violate the do-not-call rules. The Communications Act, however, requires that the FCC issue a citation as a first step when dealing with a company that does not hold an FCC license or other authorization,” said the commission.

CPM did not dispute that it is making calls to people whose names appear on the Do-Not-Call Registry. It now has 30 days to tell the FCC how it will come into compliance. It can do this either by visiting the Los Angeles field office or by letter.

If CPM continues to violate the telemarketing rules, “the FCC may impose monetary forfeitures not to exceed $11,000 for each such violation or each day of a continuing violation,” said the commission in its citation to CPM.

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