Wells Fargo Settles Second TCPA Lawsuit in Six Months Showing Dangers of Misguided Marketing Efforts

Businesses that engage directly with the public have a number of duties and legal responsibilities that must be met. When the new customer and client outreach efforts concern certain financial products, regulatory oversight will be even more stringent. However, even seemingly routine efforts to attract new clients through electronic communications are governed by state and federal laws. In particular, the Telephone Consumer Protection Act (TCPA) sets forth certain requirements that a company’s marketing and outreach efforts must satisfy. Baltimore business attorney William S. Heyman explains:

Businesses at all stages of their development can run afoul of TCPA and other state and federal laws. Due to the aggregate nature of penalties under the TCPA, violations can quickly add up to comprise a large penalty. Attorney William Heyman and The Law Firm of William S. Heyman can assist businesses to maintain legal compliance when engaging in electronic communications or other business functions. To discuss how Mr. Heyman can put his more than 20 years of legal advisory experience to work for your business, call (410) 305-9287 or contact Mr. Heyman online.

In July 2016 Wells Fargo Settled a TCPA Complaint Regarding Home Equity and Mortgage Loans

Wells Fargo has previously faced allegations stemming from violations of the TCPA. Previously, Wells Fargo settled a matter brought regarding robocalls to consumer cell phones to sell home equity and mortgage loans. Consumers alleged that Wells Fargo illegally utilized autodialers and prerecorded “robocallers” to solicit customers. In this matter, plaintiffs claimed that more than 3 million consumers were affected.

This matter was settled in July 2016 for $16.3 million. The company did not admit wrongdoing in this matter.

Wells Fargo Settles Second TCPA Suit Impacting Auto Installment Loan Collection Attempts

When it comes to loan and debt collections activities, most managers and professionals are aware of their duties under the Federal Debt Collections Practices Act, Truth in Lending Act (TILA), and other federal laws. However, additional statutory considerations exist. For one, the TCPA also applies to certain types of collection efforts.

According to plaintiff’s allegations, Wells Fargo Dealer Services, Inc. engaged in collection attempts by utilizing an autodialer. The autodialer was in use from roughly April 2011 to March 2016. The software based dialer was used to place collection calls stemming from auto retail installment sales contracts. Plaintiffs alleged that Wells Fargo Dealer Services placed automatic calls to clients cellphones without authorization in violation of the TCPA. Plaintiffs alleged that 3.38 million individuals were affected by these violations. Plaintiffs also allege that Wells Fargo “intentionally, willfully, and knowingly” disregarded its duties and obligations under the TCPA.

Under terms of the settlement, Wells Fargo Dealer Services and its parent company Wells Fargo Bank N.A. do not admit wrongdoing and maintain that proper authorization was granted. However, following mediation, the parties agreed to avoid the uncertainty of litigation and settled the matter for $15.7 million.

TCPA Risk Exists for all Businesses Making Electronic Communications to Potential Clients

Companies and organizations must account and plan for an array of legal considerations affecting marketing and outreach efforts. It is essential that this due diligence occurs. The failure to engage in this type of legal review or marketing or other outreach efforts can lead to disputes, litigation, and penalties.

If your business or organization is considering making electronic communications to clients, it is prudent to engage in a careful legal compliance review. To schedule a confidential legal consultation with an Intra Corporate & Closely-Held Business Disputes & Litigation attorney who has advised businesses for more than 20 years, please call (410) 305-9287 today.