July 28, 2015

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July 27, 2015

Capital One Agrees to $75 Million Telephone Consumer Protection Act (TCPA) Settlement

Capital One and three collections agencies recently announced the largest proposed cash settlement in TCPA history – $75.5 million. This is more than double the amount of the prior record – a $32 million settlement from Bank of America.

The plaintiffs allege that Capital One and the other defendants used an ATDS to place debt collection calls to 21 million cell phone numbers without the requisite consent. Under the terms of the proposed settlement, Capital One will contribute $73 million to the settlement fund, while AllianceOne Receivables Management Inc., Leading Edge Recovery Solutions, LLC and Capital Management Services, L.P. will contribute $1.4 million, $996,205 and $24,220, respectively.

The settlement agreement estimates that claimants will receive at least $20-$40 and allocates up to 30% of the settlement fund for an award of attorneys’ fees and costs in an amount to be set by the court. The settlement fund is non-reversionary. Capital One also agreed to take steps to ensure TCPA compliance going forward though it expressly disclaimed any liability in connection with the settlement.

On July 29, 2014, Judge James F. Holderman of the United States District Court for the Northern District of Illinois preliminarily approved the proposed settlement. The court set deadlines of August 28, 2014, for class notice and November 26, 2014, for filing claims. The final approval hearing is scheduled for December 9, 2014.

It is notable that this settlement has been reached in an action involving informational calls, which are not subject to the heightened “prior express written consent” requirements that have applied to telemarketing calls since October 16, 2013.

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About this Author

Meredith Slawe, commercial litigation, Legal Specialist, Drinker Biddle
Associate

Meredith C. Slawe is a partner in the firm’s Litigation Group.  She has a broad litigation practice with an emphasis on consumer class actions, business disputes and internal investigations.  Meredith routinely defends companies in putative class actions brought under consumer protection statutes in jurisdictions across the country.  She specializes in defending companies against false and deceptive marketing, advertising and pricing allegations, and privacy-based claims, and has particular expertise in the retail, communications, pharmaceutical...

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Brynne Madway,litigation Attorney, Drinker Biddle Law Firm
Associate

Brynne Madway is an associate in the firm's Litigation Group.

In General. Brynne earned her law degree from The George Washington University Law School with high honors, where she was a member of the Order of the Coif and notes editor for the George Washington International Law Review. She also served as the co-President and Treasurer of Lambda Law, the LGBT student organization, the President of the Feminist Forum, and Co-Chair of the Van Vleck Constitutional Law Moot Court Competition. While in law school, Brynne served...

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