Equipment Finance News

Honda captive challenged over phone contacts

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American Honda Finance, the captive auto lender for Honda car finance, is facing possible class action in a California state court over its alleged use of automatic telephone dialing to contact customers with overdue loan or lease payments, with claims the company is operating contrary to the Telephone Consumer Protection Act (TCPA), which is designed to limit telemarketing calls.

The case has been brought by Michelle Adame in Los Angeles. Adame is the representative of a nationwide class of people who in the last four years received calls from the company through an automatic telephone dialing service or an artificial or pre-recorded voice.

Adame is allegedly that American Honda Finance invaded her privacy and subjected her to “numerous unwanted calls” that created a nuisance and shortened the battery life of her mobile phone.

The allegation states: “Plaintiff did not provide defendant or its agent prior express consent to receive calls to her cellular telephone, including by means of an automatic telephone dialing system (ATDS) and/or artificial or pre-recorded voice message”.

According to court documents, the repeat telephone calls to Adame’s mobile phone allegedly began in June 2014 and went on until August 2016. The complaint alleges that American Honda Finance was attempting to collect on an alleged debt owed by Adame’s father, although her phone number is not listed on a loan application completed by her father.

“Adame seeks damages amounting to $500 for each violation of the TCPA for herself and each class member, plus injunctive relief and a jury trial. The case is currently ongoing. American Honda Finance has made no comment on the issues.