Anne Bucher  |  March 26, 2014

Category: Consumer News

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Capital One class action lawsuitCapital One Bank NA has agreed to pay $3 million to settle a class action lawsuit alleging the bank illegally recorded outbound customer service calls.

Multiple class action lawsuits, which were later consolidated, were filed by Capital One cardholders who claim they received telephone calls from the company, which were recorded without their knowledge or consent. The plaintiffs claim that Capital One’s failure to inform them that the calls were being recorded violated California’s Privacy Act, as well as similar statutes in Florida, Maryland, Nevada and New Hampshire.

Capital One filed a motion to dismiss the consolidated class action lawsuit. Its motion was granted in part and denied in part. Subsequently, the plaintiffs filed an amended complaint. Although Capital One again sought the dismissal of the class action lawsuit, their motion was denied. The parties commenced settlement negotiations in attempt to resolve the dispute.

On Monday, the plaintiffs filed a motion with the court seeking preliminary approval of the class action settlement and certification of the Settlement Class. “Rather than needlessly expend both party and judicial resources in litigating this matter any further, the parties in this action engaged in settlement negotiations so that if this matter could be resolved on a classwide basis, such relief could be provided in an expeditious and economical fashion,” the plaintiffs wrote.

Under the terms of the proposed class action settlement, Capital One has agreed to create a $3 million fund to pay claims for the alleged violations of state privacy statutes to Class Members. Capital One will also pay the costs associated with providing notice of the class action settlement as well as the costs associated with claims administration. Individual awards will be divided equally among the Class Members after the fees and costs are deducted.

Class Members of the proposed class action settlement include all persons in California, Florida, Maryland, Nevada and New Hampshire who received at least one phone call from Capital One and spoke with a company representative between July 13, 2006 and March 31, 2012, without being informed that the call may be recorded or monitored.

“Under the Settlement, Class Members who make claims will be compensated for the telephone calls they claim were recorded without notice or consent,” the court documents state. “Thus, the amount offered in settlement, arrived at after intensive arm’s-length negotiations, is a significant recovery for the Class in light of the risks of further litigation and Capital One’s likely defenses.”

A hearing for the preliminary approval of the class action settlement has been scheduled for April 21, 2014.

The plaintiffs are represented by Paul R. Kiesel, Jeffrey A. Koncius and Matthew A. Young of Kiesel Law LLP; Andrew N. Friedman and Douglas J. McNamara of Cohen Milstein Sellers & Toll PLLC; Richard B Wentz and Jean M. Wentz of The Wentz Law Firm; Michael D. Braun of Braun Law Group PC; Kenneth M. Lipton of Law Offices of Kenneth M. Lipton; Thomas A. Kearney and Prescott W. Littlefield of Kearney Littlefield LLP; and Jerome L. Ringler and Catherine Burke Schmidt of Ringler & Associates.

The Capital One Call Recording Class Action Lawsuit is Stanley Nader v. Capital One Bank NA, et al., Case No. 2:12-cv-01265, in the U.S. District Court for the Central District of California.

UPDATE: Instructions on how to file a claim for the Capital One call recording class action settlement are available here.

UPDATE 2: According to a post on the settlement website, the Capital One call recording settlement received final approval on Nov. 17, 2014. However, there is an appeal pending and the distribution of settlement funds cannot be made until the appeal is resolved.

UPDATE 3: On Jan. 19, 2016 readers began reporting they were receiving checks in the mail from the Capital One call recording class action settlement. Congratulations to everyone who submitted a valid claim and got PAID!

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55 thoughts onCapital One Agrees to $3M Class Action Settlement over Call Recording

  1. jovanna says:

    hola me gustaria saber donde puedo dejar un malo commentaries para capital one yo tenia una target a con ellos y la pague… resulta que me tienen que de volver Un dinero y hasta hora no me en devuelto nada llamo y siempre tienen una historian nueva pero no me manda en cheque que puedo hacer por favor gracias

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