The TCPA "czar" talks spam call lawsuit risks for lenders

Eric Troutman, a partner at Troutman Amin LLP and known as the "czar" of TCPA litigation, is predicting a surge in Telephone Consumer Protection Act (TCPA) lawsuits targeting mortgage lenders. He emphasizes that these cases are complex, resource-intensive, and can result in substantial settlements – often reaching seven or eight figures. Troutman attributes the rise in lawsuits to a highly motivated plaintiffs' bar discovering lucrative opportunities within the TCPA, with recoveries exceeding those of many other federal statutes.

He notes that real estate firms have recently been targeted, and mortgage companies are now facing renewed scrutiny. While success rates vary depending on a company’s legal counsel and compliance strategies, Troutman points to cases like Coldwell Banker and Sirius XM as examples of the devastating financial consequences of inadequate TCPA defense. He also cautions against dismissing pro se plaintiffs, as some, like Mark Dobronski, are skilled litigators capable of winning against well-established firms.

Troutman advises companies to prioritize TCPA compliance, recognizing it as a major risk for any business engaging in high-volume consumer outreach via phone or text. He stresses that the increasing volume of filings is coupled with a rising success rate for plaintiffs, making proactive legal counsel and a robust compliance strategy essential to mitigate potentially billions of dollars in exposure.

(Source：American Banker)