Why several years of unwanted robocalls from Truist will cost the bank $4M
A North Carolina federal judge has preliminarily approved a $4.1 million class action settlement between Truist and a group of cellphone users who received unwanted calls from the Charlotte-based bank.
The proposed settlement involves about 6,000 people, according to court records filed in the U.S. District Court for the Western District of N.C. in Charlotte. Truist placed those prerecorded robocalls from Feb. 10, 2019, to Aug. 31, 2022.
According to a motion for preliminary approval filed in April, class members may each receive $440.
Class attorneys noted that the Telephone Consumer Protection Act of 1991 generally prohibits robocalls to cell and home phones. This information was included in a complaint filed in February 2023.
Texas resident Kevin Truong represented the class of 5,998 people. In 2021, he claimed that Truist made at least 24 robocalls between Sept. 14 and Oct. 25. And that continued for the rest of the year with 11 more calls to Truong, according to court records.
Truong did not have a relationship with Truist and did not consent to getting calls. The calls came from call centers to locate and/or collect payment from account holders. He did not know them. Other non-account holders made complaints about receiving similar calls from Truist.
“These calls injured Plaintiff by invading his privacy, interfering with his cellular telephone, and wasting his time,” the complaint said.
Truist denied any liability or wrongdoing related to the alleged claims and maintain it complied with all applicable laws, according to settlement documents. However, to avoid the expense and uncertainty of a trial, the bank agreed to settle.
And although Truist believes the case does not meet the requirements for a class action, it will not oppose the certification of a settlement class.
Truist declined to comment to The Charlotte Observer about the settlement. Lawyers representing both parties did not respond to requests for comment.
A prior case involving Truist
The proposed settlement comes less than a year later after Truist was ordered to pay more than $8 million in penalties for employees sending messages on unapproved platforms like WhatsApp. Federal regulators granted Truist a fee reduction for being upfront about the violations.
In August 2024, Truist was among over 20 financial institutions that agreed to pay more than $470 million for the communication violations. These payments were made to both the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Truist paid $5.5 million to the SEC and $3 million to the commodity commission.
Since 2019, Truist has set policies prohibiting employees from using unapproved communication methods, such as personal text messages and social media applications, for certain business activities. Truist reviewed and archived messages sent through approved methods. However, messages sent via other applications, such as WhatsApp, were not reviewed or archived, according to CFTC.
About Truist
Truist, which was formed in 2019 with the merger of BB&T and SunTrust banks, is headquartered at 214 N. Tryon St. More than 3,000 workers are in the Charlotte area, part of around 40,000 people companywide.
