Capital One Financial Corp. and three collections agencies, along with consumers who settled a landmark Telephone Consumer Protection Act (TCPA) case against the companies, have asked the Seventh Circuit Court of Appeals to approve the record-breaking $75 million settlement over objections of a small fraction of claimants.
Parties on both sides of the historic settlement — which accused Capital One and the others of using an automated dialer to call customers’ cell phones without consent — want to see it consummated. An agreement for Capital One to cease all autodialing is an important part of this settlement. It appears that only 14 out of more than 16 million class members objected to the settlement. Only 462 persons timely opted out of the settlement.
U.S. District Judge James F. Holderman in February approved the settlement under which the bank and Leading Edge Recovery Solutions LLC, Capital Management Services LP and AllianceOne Receivables Management Inc. will collectively pay $75,455,098.74 into a settlement fund and change their practice of cold-calling customers’ cellphones.
Capital One agreed to pay $73 million into the fund, Leading Edge agreed to almost $1 million, AllianceOne $1.4 million, and CMS more than $24,000, the settlement agreement said. The Defendants contacted nearly 16 million class members, of whom 1.4 million filed claims.