A class action lawsuit filed against a California-based mortgage company claims it violated the Telephone Consumer Protection Act and is now seeking monetary damages and a court order to stop their telemarketing.

Plaintiff Chris Arnet filed the lawsuit against Catalyst Mortgage, claiming that the lender sent him at least three unsolicited text messages in 2024 trying to sell him mortgage products despite having his phone number registered on the National Do-Not-Call registry in March 2021.

"Defendant uses unlawful and invasive telemarketing tactics to drum up business," the attorneys wrote in the suit.  

The Telephone Consumer Protection Act is a federal law enacted in 1991 aimed at protecting consumers from unwanted telemarketing. Telemarketers are generally prohibited from calling phone numbers listed on the registry. Companies must also maintain an internal list of consumers who ask not to be contacted again. 

The suit says texts Arnet received stated that Catalyst Mortgage was reaching out because they were notified by credit bureaus that Arnet had a recent credit inquiry for a mortgage loan. However Arnet claims he is not a customer and has no prior business relationship with Catalyst Mortgage. He also alleges never providing his phone number or consent to be contacted.

Arnet filed this as a class action on behalf of himself and a proposed National Do-Not-Call Registry Class, which includes anyone who had their phone number on the National Do-Not-Call Registry for at least 31 days, received two or more telemarketing calls or texts from Catalyst Mortgage within a 12-month period and received these communications within the four years prior to the start of this litigation.

Chris Artnet's attorney and Catalyst Mortgage did not respond to our request for comment.  

Catalyst Mortgage has $162 million in loan volume with an average loan size of $431,516, according to IEmergent. The majority of their loan types are conforming and FHA. 

Telemarketing is very common in the mortgage industry as part of the Credit Intermediation and Related Activities, according to the Bureau of Labor Statistics. Mortgage lenders commonly face litigation due to violations of the TCPA Act, such as a recent dispute where Prime Home Lending was accused of using aggressive telemarketing tactics that confused clients from another mortgage origination. 

Most recently, a national insurer filed a trademark dispute against a lender, seeking 100,000 in damages. Fannie Mae also sued home warranty providers who used their name in solicitation and marketing.  

Arnet is asking for monetary damages which could be tripled up to $1,500 per violation if the court finds Catalyst Mortgage acted willfully or knowingly.