California Call Recording Law Loses its Teeth; Collectors to Benefit

Note: Moss & Barnett attorney John Rossman also contributed to this article.

Many debt collection companies record calls to ensure quality and compliance in their operations. This practice has proven a double-edged sword, as it makes agencies possibly vulnerable to liability under state statutes regulating call recording. California’s call recording statute may be the most draconian of all: it imposes civil liability of $5,000 for each call surreptitiously recorded in violation of the statute.

Plaintiffs capitalized on this statute, electing not only to pursue individual claims, but also assert putative class action claims against collection agencies placing calls to California consumers. These suits expose agencies to significant, possibly crippling, monetary exposure of millions of dollars.