Bank To Pay $3.5M To Settle Lawsuit With San Diego DA And Other Prosecutors

San Diego CA

15 November, 2021

6:15 PM

Description

By Debbie L. Sklar, Times of San Diego November 15, 2021 Synchrony Bank has agreed to pay $3.5 million to settle a lawsuit that alleged the bank harassed residents throughout the state with debt collection calls, it was announced Monday. The case, brought by a coalition of California district attorney's offices, including San Diego's, alleged the Utah-based company and its agents used call centers both in and out of the country to make collection calls that were "unreasonably frequent or harassing." According to the complaint, many of the calls were at "an excessive and unreasonable volume," and continued even after consumers indicated the calls were made in error. "Often, these harassing debt collection calls were made to consumers who didn't owe any money and sometimes even to a wrong number," San Diego County District Attorney Summer Stephan said in a statement. The judgment, which was entered last week without admission of wrongdoing, holds that Synchrony Bank will pay $2 million in civil penalties, $975,000 in investigative costs, and $525,000 to a charitable trust fund to support consumer protection efforts. The bank was also ordered to establish policies and procedures to prevent unreasonable and harassing debt collection calls to California consumers, including limiting the total number of calls to each debtor and honoring consumer requests for calls to stop. Times of San Diego is an independent online news site covering the San Diego metropolitan area. Our journalists report on politics, crime, business, sports, education, arts, the military and everyday life in San Diego. No subscription is required, and you can sign up for a free daily newsletter with a summary of the latest news.