Leading US bank Citibank is preparing to pay $29.5 million to settle a legal suit for illegally calling thousands of its customers. Plaintiff Christine Head took Citibank to court after being bombarded by phone calls about debt payments that do not exist.
Unsolicited calls were also made to hundreds of thousands of customers requesting they repay the debt. The calls landed on the phones of people across the US who do not even have Citibank accounts. The prerecorded calls asked them to repay the debt, which they had never taken.
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US Bank To Pay $29.5 Million as Penalty
Citibank will pay a penalty of $29.5 million, which will be distributed equally among everyone who received the unsolicited calls. Plaintiff Christine Head claimed to the court that the calls had violated the Telephone Consumer Protection Act (TCPA). The US bank will distribute $2,500 per person who has received the calls.
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However, if the members prove they received more than five calls, compensation would be extended. The money is reserved for those who have never been Citibank customers. The bombardment of phone calls from the US bank was made between August 15, 2014, and July 31, 2024.
The court hearing states that anyone who believes they should receive the settlement amount must file before December 20, 2024. The final court approval for the cash settlement from the US bank will be heard on January 14, 2025.
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The Telephone Consumer Protection Act was enacted in 1991 to safeguard consumer privacy from US corporations and banks. TCPA restricts unsolicited robocalls where people are not involved in the development. Consumer consent is required before calling or sending a text message on their personal phones. “Telemarketers may not use automated dialing to call wireless phones and leave pre-recorded telemarketing messages without consent,” read the rule.