Bank to pay $2 million in collection call suit
On December 14, a Superior Court of California granted a stipulated final judgment resolving claims that a national bank (defendant) violated the Rosenthal Fair Debt Collection Practices Act (RDCPA) and the FDCPA by making “harassing and annoying” debt collection calls to its customers. According to the stipulated final judgment, since at least March 2015, the defendant allegedly violated California and federal law by making phone calls with “unreasonably excessive frequency,” while also persisting in calling wrong numbers in attempts to collect on unpaid debts. The defendant, which did not admit any liability or wrongdoing, agreed to, among other things: (i) adopt or maintain policies and procedures to avoid such harassing calls; (ii) limit the number of calls it will make as part of its future debt collection efforts; and (iii) cease calling those who ask orally or in writing that they not be contacted. Under the terms of the stipulated final judgment, the defendant must pay $1.45 million in civil penalties, $300,000 in investigative costs, and $250,000 in restitution.