AMEX Settles $9.2M Debt Collection Phone Call Class Action Lawsuit

An Illinois federal judge recently approved a $9.25 million debt collection phone call class action lawsuit settlement, ending litigation between American Express and a group of consumers who say the company violated the TCPA.

The class of plaintiffs allege the credit card company had violated the Telephone Consumer Protection Act (TCPA), by making numerous unwanted debt collection phone calls to unsuspecting consumers.

U.S. District Judge John Z. Lee issued the order certifying the TCPA settlement to resolve the debt collection phone call class action lawsuit that had been brought against American Express Centurion Bank and West Asset Management Inc.

According to the debt collection phone call class action lawsuit, American Express had hired third party companies to conduct their debt collection calls that included West Asset Management Inc.

American Express stated that if these companies had violated the TCPA, customers should take legal action against the respective company.

While Judge Lee had denied American Express this summary judgment, U.S. Magistrate Judge Jeffery Cole stated in September 2015 that there was “no present plaintiff” directly contacted by American Express. However a 2010 amendment had added Joetta Callentine and Scott Dolemba as named plaintiffs, resolving this issue.

Furthermore, Judge Lee stated the settlement and its parameters made to resolve the debt collection phone call class action lawsuit were fair and reasonable. According to the plaintiff’s lawyers, there is a $8.25 million class settlement for the alleged telemarketing calls made by Alorica Inc. for American Express.

There is also a $1 million settlement for debt collection calls allegedly made to customers not even affiliated with American Express, made by West Asset Management.

Overview of the Debt Collection Phone Call Class Action Lawsuit

According to the debt collection phone call class action lawsuit, Callentine alleged American Express and West Asset Managed had violated the TCPA when the companies called her over an unresolved death from her late mother’s account.

While her mother was an American Express customer, Callentine is not but still experienced the debt collection calls made to her cellphone. Callentine also claims that Alorica had made these calls on the credit card company’s behalf, also violating the TCPA.

Dolemba made similar claims, stating he received calls from West Asset Management in June 2013 from a phone number reportedly assigned to West Asset Management. However the calls made to him were meant for a different person who shares the same last name, not Scott Dolemba.

Even though he stated he did not live with this other person and that the company had the wrong number, the West Asset Management caller had receive another call from the same number in July 2013.

The debt collection class consists of all American citizens who had received cellphone debt collection calls from the company, totaling nearly 3,000 cellphone numbers on the call list the company allegedly used automated dialing equipment to call.

According to court papers, the final approval hearing from the settlement is set for Nov. 30, 2016.

The American Express Debt Collection Phone Call Class Action Lawsuit is Ossola et al. v. American Express Co. et al., Case No. 1:13-cv-04836, in the U.S. District Court for the Northern District of Illinois.

UPDATE: The American Express TCPA class action settlement is now open! Click here to file a claim!

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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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