LoanDepot Loses Robocall Class Lawsuit Constitutional Challenge

A California-based loan company lost its argument that a federal law’s robocall restriction is invalid based on its now-unconstitutional government-debt exception, according to an Arizona court ruling.

Richard Winters filed the proposed class action against LoanDepot.com LLC in 2020, alleging that the mortgage company repeatedly spammed him with telemarketing robocalls without his permission in violation of the Telephone Consumer Protection Act.

Winters said that because the U.S. Supreme Court found an exception related to the collection of government debt unconstitutional in the 2020 case Barr v. American Association of Political Consultants Inc., federal courts don’t have subject matter jurisdiction ...