Citibank Settles Consumer Robocall Federal Claims

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By Daniel R. Stoller

Aug. 11 — Citibank NA reached a settlement with a North Carolina man over allegations that the company sent multiple unsolicited text messages to his mobile phone after repeatedly asking the bank to halt communication ( Foster v. Citibank, N.A., M.D.N.C., No. 16-cv-00775, notice of settlement 8/10/16 ).

The amount of the settlement wasn't disclosed in the Aug. 10 filing. The settlement came one day before Citibank was required to respond to the Telephone Consumer Protection Act, 47 U.S.C. §227, allegations. Counsel for Citibank told Bloomberg BNA Aug. 11 that the settlement is confidential and there is no further comment.

The case shows the multiple fronts in which a large company must defend in consumer law suits. Although Citibank was able to settle the federal litigation, it may still have to respond to charges from the Consumer Financial Protection Bureau or other regulators.

According to the June 27 complaint, plaintiff Scott Foster received unsolicited text messages related to a Citibank account even though he never had any commercial relationship with the bank.

The TCPA prohibits the use of automated telephone dialing systems without the prior express consent of a consumer to receive unsolicited calls or text messages on a mobile phone. Here, Foster alleged that he made contact with multiple bank employees who all promised that the messages would cease. When the messages failed to stop, Foster changed phone numbers, filed a complaint with the CFPB and then filed the federal court complaint.

Citigroup Inc., Citibank's parent company, is the fourth largest U.S. bank with a market capitalization of $132 billion, Bloomberg data show.

Plaintiff didn't respond to Bloomberg BNA's request for comments.

Nelson Mullins Riley & Scarborough LLP represent Citibank. Foster represented himself in the matter.

To contact the reporter on this story: Daniel R. Stoller in Washington at

To contact the editors responsible for this story: Donald G. Aplin at ; Jimmy H. Koo at

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