Class Action Alleges Mortgage Lender Unlawfully Recorded Calls with Potential Buyers

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A proposed class action claims Capital Home Mortgage has recorded telephone conversations with potential buyers without notice or consent.

According to the 11-page lawsuit, the mortgage lender has run afoul of the California Invasion of Privacy Act (CIPA). The allegedly unlawful, secret recording by the company was, as the case reads, “knowing, willful, and intentional.”

The suit contends that the privacy rights of the plaintiff, a California resident, were violated as a result of Capital Home Mortgage’s failure to “advise or otherwise provide notice at the beginning of the conversation(s) with Plaintiff that the call(s) would be recorded, and Defendant did not try to obtain Plaintiff’s consent before such recording.”

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Per the complaint, the plaintiff’s information was sold to Capital Home Mortgage by credit reporter Experian sometime after the consumer signed up for identity theft protection in June 2017. The plaintiff was contacted by the mortgage lender by phone in November of 2022, the case says.  During this call, the filing claims, the defendant gave no warning that it was documenting the conversation and did not request the consent of the plaintiff for such recording. 

“Plaintiff was surprised and annoyed that Defendant recorded his call without telling him,” the complaint reads. “There was no beeping noise or any indication of recording.”

According to the lawsuit, Capital Home Mortgage “records all its calls, both inbound and outbound, like the one it made to Plaintiff,” without notice.

The lawsuit looks to represent anyone residing in California whose cellphone calls were unlawfully recorded by Capital Home Mortgage or its agents.

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