SmartPay has agreed to pay nearly $8.7 million to settle class action allegations that the leasing company sent out unwanted texts to consumers in violation of federal law.
The settlement will benefit consumers who received text messages from either SmartPay Leasing or Twilio Inc. and continued to receive the texts despite texting the word “STOP” in reply to the messages. The unwanted texts must have occurred between Sept. 29, 2015, and June 13, 2017.
According to the SmartPay class action lawsuit, consumers were subjected to multiple unwanted text messages that they were unable to opt out of in violation of the Telephone Consumer Protection Act.
The plaintiffs alleged that they and others asked the companies to halt the messages by texting “STOP” in response, but still continued to receive them.
The class action lawsuit contended that SmartPay Leasing, along with its vendor Twilio, violated the TCPA by subjecting consumers to spam text messages.
Originally, the TCPA was enacted in 1991 to restrict the use of phone and fax machines for telemarketing purposes. The Act has since been updated and covers text or SMS phone messages to cellular devices.
Under the TCPA, companies are prohibited from sending out unsolicited text messages and from failing to provide a way to opt-out of advertising messages sent to a cell phone. Companies who are caught sending spam text messages may be subject to steep fines of up to $1,500 per message.
The companies continue to deny that they violated the law, but agreed to pay $8,679,000 as a part of the SmartPay TCPA class action settlement. In addition to the payment, SmartPay has agreed to implement policies and procedures to ensure it obtains express consent to send advertising text messages and that it will honor “STOP” requests in the future.
Class Members do not need to act to make a claim in the SmartPay class action settlement, they will be entered into the settlement automatically and are expected to receive $245.
Those who wish to opt out of or object to the settlement need to do so by Dec. 16, 2019.
“The Class Members include all persons within the United States (i) to whose cellular telephone number (ii) SmartPay sent a text message (iii) using its vendor Twilio, Inc.’s platform (iv) from September 29, 2015 to June 13, 2017, (v) after texting the word ‘STOP.'”
Proof of Purchase
None. Class Members will be automatically entered into the settlement.
Objection and Exclusion Deadline
Esparza v. SmartPay Leasing Inc., Case No. 3:17-cv-03421, in the U.S. District Court for the Northern District of California
Esparza v. SmartPay Leasing Inc.
c/o Heffler Claims Group
P.O. Box 58817
Philadelphia, PA 19102-8817
Ronald A. Marron
LAW OFFICES OF RONALD A. MARRON
Jeffrey A. Topor
SIMMONDS & NARITA LLP
Emily Lee Wallerstein
Eric J. Troutman
SQUIRE PATTON BOGGS
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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