Major American Bank Facing Lawsuit for Debt Collection Practices

by | Jul 30, 2013 | Compliance Related News | 0 comments

Last week, a Florida resident filed a class action TCPA lawsuit against one of the largest US banks in federal court alleging the bank violated the TCPA by using automated dialers to call customers’ cell phones to collect debt and using pre-recorded voice messages to address consumers that answered the calls.

Businesses found in violation of the TCPA must pay between $500 and $1,500 per violation, depending on if they are found to have willfully violated the law.

The plaintiff alleges that the bank violated Florida state law regulating consumer debt harassment.Debt collectors must comply with debt collection rules, which include requirements like debt collectors cannot call early in the morning or late at night and the agent calling the consumer must provide his name, on whose behalf he is calling, and a telephone number or address where he may be reached.

We’ve known that the Consumer Financial Protection Bureau (CFPB) and the FTC are going to be stepping up enforcement of debt collection regulations and related marketing privacy laws. Consumer debt collectors and financial service institutions need new tools to balance compliance with the law and their own productivity and effectiveness.

It’s tough, but not impossible.


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