New TCPA Action Against Card Issuer Highlights Growing Area Of Litigation Risk

Explore:  Credit Cards TCPA

On January 29, a credit card holder filed a putative class action against a card issuer that funds consumer retail credit accounts for customers of a major retail chain, alleging that the issuer violated the Telephone Consumer Protection Act in attempting to collect on the card holder’s credit card debt. Complaint, French v. Target Nat’l Bank, No. 13-233 (S.D. Cal. filed Jan. 29, 2013). The named plaintiff claims that after she fell behind on her payments, the issuer began making numerous calls daily to her personal cell phone, a number she claims not to have provided to the issuer. The issuer allegedly used an “automatic telephone dialing system” to make the calls, which the card holder claims continued even after she notified the issuer that it was not authorized to contact her on her cellular phone, and asked that the calls cease. The card holder alleges that in doing so, the issuer violated the TCPA, which requires express written consent from a consumer prior to receiving calls from an automated dialing system or an artificial or prerecorded voice. On behalf of the proposed class, the card holder is seeking $500 in statutory damages for each and every alleged negligent violation, and treble damages for each alleged knowing or willful violation. The suit is the latest in a growing number of cases to be filed in recent years, particularly in California, and highlights a significant litigation risk for card issuers and debt collectors.

Written by:

Published In:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© BuckleySandler LLP | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

All the intelligence you need, in one easy email:

Great! Your first step to building an email digest of JD Supra authors and topics. Log in with LinkedIn so we can start sending your digest...

Sign up for your custom alerts now, using LinkedIn ›

* With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name.