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Debt collectors assume considerable risk by taking over debt collections for creditors. One of the highest risks occurs when debt collectors violate one or more provisions of a landmark consumer protection law.
Collecto Inc has agreed to compensate eligible class members who are part of a class action lawsuit that alleges Collecto violated the Telephone Consumer Protection Act (TCPA). The TCPA prohibits companies from using automated telephone dialing systems to make debt collection calls. The primary plaintiffs in the Collecto class action lawsuit asserted Collecto made the automated telephone dialing phone calls to cell phones owned by consumers. Approval of the Collecto class action lawsuit will merge two separate lawsuits into one TCPA-related lawsuit.
The primary plaintiffs also charged Collecto with dialing wrong numbers of consumers who had not signed agreements with the original creditor. Dialing wrong numbers to collect a debt is also a violation of the TCPA. Enacted to prevent telemarketers from making annoying phone calls, the TCPA has expanded its legal reach to include several provisions that pertain to debt collectors. Each violation of the TCPA can cost a defendant between $500 and $1,500.
Collecto continues deny all of the allegations presented in the class action lawsuit. However, the company decided to settle the lawsuit to avoid the uncertainty of a prolonged civil trial. A judge granted preliminary approval of the Collecto TCPA class action settlement on August 10, 2017.
What You Need To Know About The Collecto TCPA Class Action Settlement
Eligible class members of the Collecto class action settlement “include U.S. residents who, between July 23, 2009 and June 30, 2014, received one or more calls on their cell phone made by Collecto using an automatic telephone dialing system, and who never had an agreement with the creditor for whom Collecto sought to collect.” Eligible class members have until November 27, 2017 to opt out of the class action settlement or contest any provision of the agreement. Compensation for each class members depends on the number of valid and timely claim forms filed by eligible class members. Claimants must verify they were the designated users of the cell phones that received the TCPA violating telephone calls from Collecto.
Qualifying class members must submit a valid claim form by November 27, 2017. The judge presiding over the class action settlement for the case Collecto Inc. TCPA Litigation, Case No. 14-md-02513-RGS, in the U.S. District Court for the District of Massachusetts has scheduled the final hearing on January 17, 2017.Find out what happened at the final hearing by accessing the class action website www.CollectoClassAction.com. The class action website also presents the list of attorneys representing the class and defense counsels, as well as the latest information about the amount of the potential award.