Consumer Fraud

Telemarketers, Debt Collectors Subject to Lawsuits for TCPA Violations

This Alert Affects:

Consumers who received robocalls on their cell phones.

What Are Robocalls?
Robocalls are any phone calls made using automatic dialers OR that contain pre-recorded messages or artificial voices.
Can I Sue Telemarketers?
Under the Telephone Consumer Protection Act (TCPA), telemarketers and debt collectors must abide by strict laws when placing robocalls. For each unwanted phone call, you may be able to receive $500 to $1,500 by filing a lawsuit.
What Else Do I Need to Know?
If you are receiving messages from a robocaller, be sure to hold onto them. Any records you keep may make it easier for you to file a claim and receive compensation.

Robocalls are generally prohibited by federal law unless recipients have consented to calls by providing businesses with their phone numbers as contact information. Recently, companies including T-Mobile, Hilton Worldwide, State Farm Bank and DirecTV faced lawsuits after allegedly violating the Telephone Consumer Protection Act (TCPA). Under this federal law, telemarketers and debt collectors must follow strict rules when placing robocalls, and for each TCPA violation, recipients may be able to receive compensation of up to $1,500.

Are you receiving robocalls to your cell phone? If so, you may be able to join the thousands of consumers currently seeking compensation for these unwanted calls. Be sure to save any messages you received from the autodialer to make filing a claim easier. Contact us today to learn more.

What Are Robocalls?

Robocalls are any phone calls made using automatic dialers (systems that store and dial phone numbers using a number generator) or that contain pre-recorded messages/artificial voices. While automatic dialing systems typically place recorded messages, they can also make calls in which a live person comes on the line to speak. These calls are illegal if the company did not receive express consent from the called party. Recipients may be able to tell that calls have been made by an autodialer if they notice an immediate hang-up or period of “dead air” before the caller begins speaking.

Who Can I Sue for Unwanted Robocalls?

You may be able to take file a lawsuit against any of the following companies if they have made unwanted calls to your cell phone:

  • Retailers
  • Telemarketers
  • Debt collectors
  • Credit card companies
  • Check cashing companies
  • Banks and mortgage lenders
  • Hospitals
  • Student loan companies, such as Sallie Mae
  • Companies claiming that the recipient has won a contest, sweepstakes, etc.

Attorneys are investigating a number of companies for TCPA violations including, but not limited to, the following: 

  • Aagon
  • ADT Security
  • Ally Financial
  • American Collection Services
  • Aquino
  • Asset Acceptance
  • Bank of America
  • Capital One
  • Chase
  • Check Mart
  • Citibank
  • Collection Information Bureau
  • Comenity
  • Commonwealth Financial Systems
  • Discover
  • Dish Network
  • Drive Time
  • E Title Loans
  • Enhanced Recovery Company
  • GC Services
  • GE Money/GENPAC
  • GE Retail Capital Bank
  • Gila, LLC
  • Green Tree
  • HSBC
  • IC Systems
  • iYogi, Inc.
  • Mark One
  • Midland Credit Management
  • Nationstar
  • National Credit Adjustments
  • NCO
  • Ocwen Financial
  • P&B Capital
  • Palisades Collection
  • Pendrick Capital Partners
  • Pinnacle Security LLC
  • Portfolio Recovery Associates
  • Resurgent Capital
  • Sallie Mae
  • Santander
  • US Fast Cash
  • Verizon Wireless
  • Wells Fargo
  • Global Healthcare Management LLC (NJ)
  • All American Medical Supply II, Inc. (NJ)
  • U.S. Healthcare Supply LLC (NJ)
  • Dependable Diabetic Supply, LLC (FL)
  • One Source Medical Supply, LLC (FL)
  • Saracare LLC (FL)
  • Heritage Diabetic Supply
  • Spectrum Diabetic Supply

Before using an autodialer to call cell phones, the TCPA requires companies to:

  • Receive Prior Express Written Consent: Companies must receive prior express written consent – in the form of a written or electronic signature – from recipients. This consent can be given, for example, when consumers provide a company with their cell phone numbers, as long as businesses clearly state that consumers may receive robocalls. Consumers have the right to revoke this consent at any time, and companies cannot require consent as a prerequisite to purchase goods.

  • Provide Options to “Opt Out”: At the beginning of a phone call, companies must provide a way for the recipient to “opt out” of future calls. When leaving a voice message, they must provide a toll-free number that a recipient can call to place their name on the company’s do-not-call list.

  • Provide Identification: Callers are required to provide their identity and the name, telephone number and address of the businesses on whose behalf they’re calling.

If you tell a company that it has the wrong number (i.e., they are dialing an old customer's number) or you ask them to stop calling, you may have ground to file a lawsuit seeking $500 to $1,500 per call if they continue to contact you.

What About Debt Collection Companies?

While debt collection companies are not required to abide by some of the laws listed above, they are required to receive express written consent from consumers regarding robocalls. In addition, debt collectors must comply with do-not-call requests, even if the recipient owes money to the company. You may be able to file a claim against the debt collection company if you asked them to stop calling and the company did not listen (even if you owe money), or if you were contacted in regard to someone else's debt. 

State Farm Faces Lawsuit Over Unwanted Debt Collection Calls

In the lawsuit of Osorio v. State Farm Bank, the insurer is being accused of violating the TCPA after its debt-collection department allegedly placed hundreds of unwanted calls on a consumer’s cell phone. According to the lawsuit, the plaintiff’s housemate, Clara Betancourt, signed up for insurance with State Farm and provided the company with the plaintiff’s cell phone number as her emergency contact. When Betancourt fell behind on her payments, though, a debt collector sought her payment by contacting the plaintiff. Despite his requests that the collector stop calling, the company allegedly placed 327 unwanted calls to his cell phone.

State Farm has argued that Betancourt consented to receiving calls on the plaintiff’s cell phone when she provided the company with his phone number as her emergency contact, and this part of the case is still pending in court; however, a panel of judges reviewing the lawsuit recently ruled that State Farm should not have continued calling the plaintiff – despite the fact that Betancourt was indebted to the company – because he could not have consented to the calls and specifically asked the collector to stop calling.

Have you received unwanted calls to your cell phone? If so, you may be able to file a lawsuit seeking $500 to $1,500 for each call you received. Contact us today by filling out our free case review form.

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Case Resources

O'Shea v. American Solar Solution Inc. Complaint
Case number 3:14-cv-0894, U.S. District Court for the Southern District of California
The Telephone Consumer Protection Act (TCPA)
Federal law that restricts telemarketing that uses automated telephone equipment to place artificial or prerecorded voice messages and send unwanted SMS text messages or faxes.
Osorio v. State Farm Bank Federal Appellate Court Ruling
Case Number 13-cv-10951, U.S. Court of Appeals for the Eleventh Circuit