Citibank, a leading U.S. bank, has agreed to settle a lawsuit for $29.5 million after being accused of illegally placing unsolicited calls to thousands of individuals. The case was initiated by plaintiff Christine Head, who filed the lawsuit after receiving so many automated calls about non-existent debt payments.
The bank claims to have made these calls to thousands of people across the US, and a huge number of them don’t even have any link with Citibank. These are prerecorded automated calls asking receivers to repay debts they never owed. This situation has affected and annoyed people throughout the country.
As a result of this bad act, Citibank now has to distribute the $29.5 million settlement among all individuals who received the unwanted calls. As part of it, users could receive $2,500 each. However according to the court, if they can prove they received the calls more than five times, this compensation amount will be even higher. The purpose of this settlement is to compensate all those non-customers of Citibank who were troubled without any reason. The calls event happened between August 15, 2014, and July 31, 2024.
The court has set a deadline of December 20, 2024, for anyone who believes they are eligible for the settlement to submit a claim. A final hearing on the approval of this settlement amount will occur on January 14, 2025.
This lawsuit was brought under the Telephone Consumer Protection Act (TCPA), passed in 1991 to protect consumers from unsolicited communications by organizations and banks. The law prohibits automated dialing systems from making such auto calls or sending prerecorded messages to individuals’ phones without their consent. According to TCPA rules, telemarketers must obtain explicit consent from consumers if they want to send automated messages or calls to their devices.
Disclaimer
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