Judge Approves $40M HSBC Illegal Cellphone Call Class Action Settlement

An Illinois federal judge granted final approval to a $40 million class action settlement that would resolve allegations that credit card issuer, HSBC Bank, violated the Telephone Consumer Protection Act (TCPA).

U.S. District Judge James F. Holderman, who preliminarily approved the HSBC illegal cellphone call class action settlement in July, officially signed off on an agreement on Feb. 27 that settled claims against HSBC for allegedly making calls to cellphones by using an automatic telephone dialing system and pre-recorded messages.

The third largest TCPA cellphone class action settlement calls for HSBC to pay $39.9 million in cash to a non-reversionary settlement fund, which would be distributed on a pro rata basis among the roughly 286,000 class members with no money reverting back to HSBC.

Overview of the HSBC TCPA Settlement

Plaintiffs claim that HSBC violated the federal Telephone Consumer Protection Act by placing unwanted cellphone calls, either itself or through an entity calling on its behalf, to cellphones between May 31, 2008 and May 1, 2012, through the use of an automatic telephone dialing system or an artificial or prerecorded voice without prior express consent.

One of the two lead plaintiffs filed the TCPA class action lawsuit against HSBC in January, claiming he began receiving unsolicited phone calls from the bank on his cellphone after obtaining an HSBC credit card in 2009, despite not providing his cell number on his application or giving the bank his express consent to be contacted. He claims that from 2010 to 2012 he received “repeated, harassing calls at all hours of the day.”

Under the TCPA class action settlement terms, HSBC denies all liability or wrongdoing. The bank said in court filings it opted to pursue a settlement, “solely for the purpose of avoiding the burden, expense, risk and uncertainty of continuing these proceedings.”

Each of the Class Members who filed timely claims will be receiving a check of approximately $100 and the lead plaintiffs will receive payments of $5,000 each. The remaining class action settlement funds will go towards attorneys’ fees and court costs.

Federal Law Offers Protection For Unwanted Cellphone Calls

The Telephone Consumer Protection Act (TCPA) is the main federal law that seeks to curb unwanted cellphone calls.  Put as simply as possible, the TCPA bans many phone calls sent to a mobile phone using an automatic telephone dialing system or robocall.

These calls are banned unless a person previously gave consent to receive the call or the call is sent for emergency purposes. This ban applies even if a person has not placed your mobile phone number on the national Do-Not-Call list of numbers telemarketers must not call.

The law specifically states that each unsolicited phone call carries a civil fine of between $500 to $1,500.

The HSBC TCPA Class Action Lawsuit is Michael Wilkins and Kenneth Mills v. HSBC Bank Nevada NA and HSBC Card Services, Inc., Case No: 1:14-cv-00190, in the U.S. District Court for the Northern District of Illinois.

UPDATE: On Jan. 8, 2016, a second round of checks was mailed to Class Members who filed claims for the HSBC TCPA class action settlement.

Join a Free TCPA Class Action Lawsuit Investigation

If you were contacted on your cell phone by a company via an unsolicited text message (text spam) or prerecorded voice message (robocall), you may be eligible for compensation under the Telephone Consumer Protection Act.

Get a Free Case Evaluation Now