Red Light Camera Company Reaches $3.5M Robocall Settlement

A traffic light camera contractor may soon be on the hook for a multi-million dollar settlement after using thousands of robocalls to collect fines for traffic violations.

The plaintiffs have presented the proposed settlement to the court for approval. The settlement addresses allegations made in a robocall class action lawsuit that Redflex Traffic Systems Inc., Creditwatch Services Ltd. and associated companies violated the federal Telephone Consumer Protection Act by making purportedly unconsented robocalls to thousands of alleged traffic violators on their cellphones.

Would-be claimants who could benefit from the proposed settlement may be members of the plaintiffs’ proposed settlement class. If certified by the court, this class would consist of persons who between August 21, 2010 and January 15, 2016 received robocalls on their cellphones from Creditwatch in the company’s attempt to collect unpaid traffic fines.

The dollar value of the settlement has not been finally determined but will range between $2.25 million and $3.5 million. Plaintiffs estimate each qualified claimant will receive about $200 after fees, costs, service awards, and administration costs are deducted from the settlement fund.

The plaintiffs say the defendants have made no objection to the proposed settlement.

Robocalls Under the TCPA

The plaintiffs’ claims fall under the federal Telephone Consumer Protection Act, or TCPA. The TCPA was enacted more than twenty years ago to spare telephone customers the annoyance of unsolicited telemarketing phone calls.

More recent amendments to the TCPA have expanded it to provide certain protections for mobile phone customers. The TCPA now prohibits any person from using an autodialer or a prerecorded message to call cellphones, unless that person has the “prior express consent” of the person they are trying to reach.

For plaintiffs successful in court, the TCPA provides for statutory damage awards of $500 per violation. In cases like this one where several thousands of TCPA violations are alleged, the statutory damages can put a defendant on the hook for several million dollars.

Collecting Traffic Fines via Robocalls

This controversy started in 2005, when the city of Albuquerque contracted with Redflex Traffic Systems Inc. to provide the city with a traffic light camera system. By 2011, the system had become so unpopular that Albuquerque citizens voted to get rid of it immediately.

Many outstanding violations still remained unpaid after the system was decommissioned. To collect the outstanding fines, the city contracted again with Redflex, who then sub-contracted with collection service Creditwatch.

Neither Redflex nor Creditwatch had ready access to the contact information for alleged violators, so Creditwatch hired an investigative service to round up phone numbers, including mobile phone numbers, for the alleged violators. Between February and November 2013, Creditwatch allegedly used those numbers to place about 42,000 calls to mobile numbers using an autodialer with prerecorded messages.

The various defendants have tried to blame each other to avoid liability. Redflex argued that it had no authority over Creditwatch and therefore could not be liable for its phone calls. Defendant Credit Control LLC, which partly purchased Creditwatch in July 2013, makes the same argument. Creditwatch, its previous owner Creditwatch Oversight, and its new part-owner CWGP LLC all contend they are essentially defunct and have no assets to contribute to any settlement fund.

The TCPA Class Action Lawsuit is Case No. 1:13-CV-01241 in the U.S. District Court for the District of New Mexico.

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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