Citibank to Pay $29.5 Million for Illegal Robocalls

Citibank has agreed to a $29.5 million settlement to resolve a class action lawsuit alleging violations of the Telephone Consumer Protection Act (TCPA). The settlement, which has received preliminary approval Wednesday from a federal court, will provide compensation to consumers, including non-Citibank customers who received unsolicited debt collection robocalls from Citibank on wrong or reassigned numbers.

The lawsuit, originally filed in 2018, accused Citibank of TCPA violations. In anticipation of a settlement, the bank requested a pause on the litigation in an Arizona federal court. The TCPA prohibits the use of automatic dialing systems and prerecorded voice messages for telemarketing purposes without prior consent. 

Citibank Accused of Bombarding Non-Customers with Robocalls

In the original class action lawsuit, lead plaintiff Christina Head accused Citibank of violating the Telephone Consumer Protection Act (TCPA) by making automated calls to her and potentially over a million others who were not Citibank customers.

The lawsuit alleged that Head received more than 100 unsolicited robocalls on her cellphone between October and December 2017. These calls were related to a past-due credit card account belonging to an individual named Jack Bingham. Head had no Citibank account and did not authorize the use of her number. She filed the lawsuit in August 2018, claiming that each unsolicited call about Bingham's debt violated the TCPA.

Court Sides with Consumers in Citibank Robocall Case

In January 2022, U.S. District Judge Roslyn O. Silver granted class certification, allowing the case to proceed on behalf of a group of consumers who had suffered similar experiences. The court overruled Citibank's argument that determining individual consent for each class member was impractical, finding that the central issue – unauthorized robocalls using prerecorded messages – could be efficiently addressed on a class-wide basis.

“Ultimately, the basic questions in this case are the same for all class members: Did Citibank call a putative class member without authorization? And, did a prerecorded or artificial voice play during the call?” Judge Silver ruled. “If the answer to both questions is yes — and all evidence indicates that it will be yes for many putative class members — recovery is appropriate. Precedent … demonstrates these questions can be litigated as a class.”

Under the terms of the Citibank unwanted robocalls class action settlement, class members are expected to receive compensation ranging from $350 to $850 each.

Case Details

• Lawsuit: Head v. Citigroup Inc.
• Case Number: 3:18-cv-08189
• Court: U.S. District Court for the District of Arizona

Plaintiffs' Attorneys

• Matthew R. Wilson and Michael J. Boyle (Meyer Wilson Co. LPA)
• Michael L. Greenwald and Aaron D. Radbil (Greenwald Davidson Radbil PLLC)

Have you received unwanted robocalls from Citibank or other companies? Share your experience in the comments below.