Citibank Class Action Settlement 2025 Over Robocalls, Check If You Are Eligible to Claim

The Telephone Consumer Protection Act (TCPA), enacted in 1991, is a U.S. federal law designed to protect consumers from unwanted or intrusive marketing practices, particularly through telemarketing calls, robocalls, and unsolicited text messages. With the rise of automated calling systems and increasing consumer complaints about intrusive marketing, the TCPA aimed to provide individuals with more control over how and when they were contacted by businesses.

The TCPA outlines several critical provisions that businesses must follow:

1. Robocall Restrictions: The use of prerecorded voice messages or "robocalls" to contact consumers is strictly regulated. Businesses must obtain prior express consent before placing such calls, especially for marketing purposes.

  

2. Autodialing Prohibition: The law restricts the use of automated dialing systems that can dial large numbers of consumers without their prior approval. This applies particularly to telemarketing, debt collection, and promotional calls.

3. Do Not Call List: The TCPA mandates that businesses respect the National Do Not Call Registry, ensuring that consumers who opt out of receiving marketing calls are not contacted by telemarketers.

4. Text Message Rules: The TCPA also covers unsolicited text messages, requiring businesses to gain consumer consent before sending marketing or promotional texts.

Violations of these provisions can lead to significant fines and penalties, including up to $500 per call or message. If the violation is deemed willful, the fine can increase to $1,500 per call.

Citibank, one of the largest financial institutions in the world, has faced several allegations of violating the TCPA, primarily involving the improper use of robocalls and autodialing systems. Here’s a breakdown of the alleged violations:

Citibank was accused of using automated dialing systems and prerecorded voice messages to contact consumers without their prior consent. These calls were often related to Citibank’s credit card services, loan offers, or debt collection efforts. The TCPA requires that businesses get clear and explicit permission from consumers before sending robocalls. In Citibank's case, it was alleged that they placed robocalls to individuals who had not agreed to receive them, violating the spirit of the law.

For example, some consumers claimed that they received repeated calls regarding credit card offers, even though they had never opted into receiving marketing calls. Under the TCPA, these calls would be considered unlawful unless the individual had provided prior consent.

Another key aspect of the TCPA is the requirement for businesses to honor requests to be removed from call lists, including those on the National Do Not Call Registry. Citibank allegedly continued to place marketing calls to individuals who had explicitly requested not to be contacted. These calls could involve everything from credit card offers to solicitations for financial products, even after the individuals had opted out or were registered on the Do Not Call list.

If a consumer tells a company to stop calling, the company is legally required to comply. In Citibank's case, some consumers reported receiving persistent calls even after they had exercised their right to opt out, which led to accusations of TCPA violations.

Citibank also faced accusations related to unsolicited text messages. Under the TCPA, sending marketing texts to consumers without their prior express consent is illegal. Citibank was allegedly sending promotional texts to individuals who had not opted in to receive them, which is another form of TCPA violation.

Consumers may have received these unsolicited texts related to offers for financial products, credit card promotions, or other banking services. The law is clear: for businesses to send promotional or marketing texts, they must first obtain the consumer’s express written consent.

In addition to marketing calls, debt collection efforts made by automated systems are also tightly regulated under the TCPA. Citibank, in its role as a major bank and credit card issuer, likely contacted customers who had overdue payments. If these debt collection calls were made using robocalling or autodialing systems without proper consent, Citibank could be liable for violating the TCPA.

If Citibank’s actions were proven to be in violation of the TCPA, the company could face substantial financial penalties. For each violation, businesses can be fined up to $500 per call, text, or message. If the violation is found to be willful or knowing, the penalty could increase to $1,500 per violation.

In many instances, these violations are not just handled individually but through class-action lawsuits, where a large group of consumers can collectively sue for damages. Class actions allow consumers to seek compensation for the inconvenience, harassment, or annoyance caused by these unwanted calls or texts. Given the large number of consumers Citibank may have contacted inappropriately, the potential damages could amount to millions of dollars.

For example, if Citibank sent out hundreds of thousands of unsolicited robocalls or texts, and each violation carried a $1,500 penalty, the total fines could be extraordinarily high. Additionally, the company might face reputational damage and the costs associated with settling or litigating these claims.

Once the court grants final approval for the settlement, those who submit valid claims will receive their compensation. The exact amount each claimant receives will depend on the total number of claims filed; if fewer claims are submitted, individuals may receive up to $850. To ensure they receive a share of the settlement, it is essential for eligible claimants to submit their claims by the deadline of December 20, 2024. Starting the claims process as early as possible is recommended to secure a portion of the $29.5 million settlement fund.

The Telephone Consumer Protection Act (TCPA) was designed to protect consumers from intrusive marketing practices, and businesses like Citibank are required to follow its provisions closely. Allegations against Citibank suggest that the company may have violated the TCPA by using robocalls and autodialing systems without consent, failing to honor do-not-call requests, and sending unsolicited text messages. If proven, these actions could result in significant fines and legal consequences, along with reputational damage.

For consumers, the TCPA provides an important layer of protection against unwanted and harassing communications. It ensures that businesses must obtain consent before contacting individuals in certain ways, empowering consumers to take control of their communication preferences. Companies like Citibank, while facing these legal challenges, must adapt to comply with evolving consumer protection laws and avoid similar violations in the future.