Debt Collection Co. Set to Pay $18M in Robocalls Lawsuit

After five years of litigation, Portfolio Recovery Associates LLC, a debt collection company, has agreed to an $18 million settlement in a multidistrict litigation (MDL) over robocalls it allegedly made violating the TCPA.

The TCPA class action lawsuit alleged that Portfolio Recovery Associates made a number of robocalls that violated the Telephone Consumer Protection Act, using a robo dialer to contact consumers without their prior express consent.

For some class members, Portfolio Recovery made as many as or more than 20 robocalls to their individual cellphones with an auto dialer.

Class members of the lawsuit include those who received robocalls to their cell phone from December 2006 to July 2013 from the debt collection company. According to both of the parties, there are around $7.4 million settlement notices expected to be sent out.

Plaintiffs also asked that the judge approve attorneys’ fees and other costs, which amounted to about 48 percent of the settlement money. The six named plaintiffs also asked for service awards of $6,250 each.

According to the filing, “While each of the parties respectively believe they would have prevailed on the merits had the case not settled, they each have concluded that settlement was preferable to the uncertainty and risk attendant with litigating the case further.”

Five TCPA class action lawsuits against Portfolio Recovery were consolidated into an MDL in 2011 in order to avoid inconsistent rulings.

Telephone Consumer Protection Act

The Telephone Consumer Protection Act, or TCPA, was first instigated in 1991. The TCPA was intended to protect consumers from unwanted solicitation through technology.

While technology has changed substantially since the inception of the TCPA, TCPA rules have expanded to accommodate new technologies as well.

The TCPA has always focused on the placement of unwanted robocalls, or the use of an auto dialer or pre-recorded messaging system to contact consumers who have not given their explicit permission to receive such calls.

As new technology such as cell phones has emerged, the TCPA has expanded to include SMS text messaging.

Reporting TCPA Violations

Reporting TCPA violations or filing a lawsuit over unwanted robocalls can help force companies to comply with TCPA rules. Reports of such violations may also reward consumers with a set amount of award money per individual violation.

According to the Federal Communications Commission, or FCC, reports of TCPA violations are extremely common. The FCC received more than 215,000 individual TCPA complaints in 2014 alone.

While consumers who reported violations to the FCC clearly knew about TCPA laws, many do not, or at least do not know the specifics of TCPA rules. Because of this, many consumers who have been contacted by companies using robocalls are left unable to make a report.

If you have received robocalls from a company without having given permission, you may be able to report these violations and receive compensation per violation.

Keep messages and phone records of the robocalls placed to your phone. In order for your TCPA lawsuit to be most effective, you will need proof of these violations.

Join a Free TCPA Class Action Lawsuit Investigation

If you were contacted on your cell phone by a company via an unsolicited text message (text spam) or prerecorded voice message (robocall), you may be eligible for compensation under the Telephone Consumer Protection Act.

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