Bloomberg Law: Privacy & Data Security brings you single-source access to the expertise of Bloomberg Law’s privacy and data security editorial team, contributing practitioners,...
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 firstname.lastname@example.org
Full text of the settlement notice is available at http://www.bloomberglaw.com/public/document/FOSTER_v_CITIBANK_NA_Docket_No_116cv00775_MDNC_Jun_27_2016_Court_.
Copyright © 2016 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to email@example.com.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to firstname.lastname@example.org.
Put me on standing order
Notify me when new releases are available (no standing order will be created)