A District Court judge in California has granted approval of a settlement in a Fair Debt Collection Practices Act class action that will see the defendant pay $51,975 to the injured plaintiffs and up to $123,000 in attorney’s fees and costs.
The Background: The plaintiff received several voicemails and text messages from the defendant. The messages sought to speak with the plaintiff or her legal representation immediately regarding documentation forwarded for legal review, a “filed case” and a “legal required notice” among other reasons.
- The plaintiff filed suit, alleging violations of the FDCPA and the Rosenthal Fair Debt Collection Practices Act by seeking to instill a false sense of urgency by falsely representing or implying that a collection lawsuit would be filed or had been filed, when no such lawsuit was intended to be filed.
- The judge denied a motion to remand the case back to state court, where it was originally filed, ruling the content of the text messages and voicemails established standing for the plaintiff’s claims to remain in federal court.
The Settlement: After agreeing to mediation, the two sides reached a settlement in the case. The defendant will pay $51,975 to the 297 members of the class, who will each receive $175. The named plaintiff will receive $2,000.
