In a case involving alleged violations of the Telephone Consumer Protection
Act (TCPA), Midland Credit Management Inc. — a subsidiary of Encore
Capital Group, Inc. — and other similar companies have reached an
agreement to settle the multi-district litigation against them. According
to the complaints, the defendants were accused of violating the TCPA when
they tried to contact debtors. The allegations state that the defendants
had used automated dialing systems, as well as prerecorded or artificial
voices, to call debtors’ cell phones without having their prior
The multi-district litigation came from three separate lawsuits involving
TCPA violations that were filed in 2010 and 2011. On October 11, 2011,
the three cases were combined and sent to the Southern District of California Court.
The settlement resulted in a value of more than $20 million to the plaintiffs
to be paid by the defendants. This includes the following:
- $13 million credit component – pro rata credits to the accounts of
- $2 million cash component – pro rata cash payments to approved claimants
- Between $3 million and $3.3 million for costs of notice and claims administration
- $2.4 million in attorney’s fees and litigation costs
- $7,500 incentive payments for the three multi-district litigations to be
paid through the cash component
According to the claim, the claimants in the United States were all called
on their cell phones by either the defendants or their subsidiaries, related,
or affiliated companies. These were calls made between November 2, 2006
and August 31, 2014, all using the prerecorded voice messages or autodialers.
Final approval of the settlement will be determined at a hearing on August 26, 2016.
Last month was a huge month for TCPA settlements, including a $4.5 million
settlement against Citizen’s Bank, a $16.3 million settlement against
Wells Fargo, and a $9.25 million settlement against American Express.
Claimants were advised to file their claim by calling a toll-free number.
Each of the 329,755 claimants involved will receive roughly $23.49 in
cash payments and about $58.84 in credits.
If you believe you have been contacted in a manner that violates the Telephone
Consumer Protection Act, you may be able to take action against the violating
party. You have rights and there are regulations prohibiting creditors
from contacting you in certain manners and at certain times. When they
violate these rights, you may be able to seek compensation. Our
Chicago consumer lawyers at Sulaiman Law Group, LTD are prepared to meet with you to talk about
your potential case.
Contact us today to get started.