GE Sued for Illegally Recording Debt Collection Calls

9/12/2012 3:00 PM EST

A potential class-action consumer fraud lawsuit filed in California alleges that the finance branch of GE Capital Corp. breached the privacy of consumers by recording their telephone conversations with company debt collectors without first disclosing the practice or obtaining customer consent.

Law360 (subscription needed) reports that a debt collector for the company told the lead plaintiff in the midst of a phone conversation that GE Capital records all calls, which often involve the sharing of sensitive details.

The complaint claims the company is violating California’s wiretapping law when it records a conversation without first obtaining the consumer’s consent.

Under the state’s law, violators must pay $5,000 per violation, which may result in a cumulative recovery of $5 million from GE Capital, writes Law360. The proposed class would include thousands of Californians whose conversations were recorded without consent by GE during the last four years.

If you or a loved one has been wronged by consumer fraud, contact Sokolove Law today for a free legal consultation and to find out if a consumer fraud lawyer may be able to help you.