Arbitrating TCPA Claims: Perhaps The Next Big Thing

Article by Judith L. Harris and Rob Jackson

A recent decision in California should put a smile on the faces of those who routinely include mandatory arbitration clauses in their commercial contracts with customers, and should put an idea into the minds of those who don't. Just last week, a federal judge upheld Citibank's effort to enforce a mandatory arbitration clause contained in a student loan agreement when Craig Smith, the borrower, sued the bank for alleged violations of the Telephone Consumer Protection Act ("TCPA"). Smith v. Citibank, N.A., Case No. SACV 13-00748-CJC (C.D. Calif., June 18, 2013). The case was stayed, pending results of the arbitration.

Earlier, Smith had borrowed money for his education from the bank but, in 2012, had fallen behind in his repayments. Citibank began collection efforts by placing autodialed calls to, and leaving prerecorded messages on, Smith's cell phone. Smith did not answer the first call he received, but he did answer