JPMorgan Chase has reached a preliminary agreement for $2.25 million to settle a class-action lawsuit filed against it by a number of individuals who allege the bank violated the Telephone Consumer Protection Act when continuing to contact individuals attempting to collect on unpaid mortgages and home equity loans after those individuals had orally revoked consent to be contacted.
The class includes more than 240,000 individuals, according to the preliminary settlement agreement, a copy of which can be downloaded by clicking here.
The plaintiffs alleged that the defendant contacted them on their mobile phones using an automated telephone dialing system and using a pre-recorded voice.
JPMorgan is denying it violated the TCPA, and even though the case was never certified as a class, is settling because of the ongoing legal costs associated with defending the suit.
The two named plaintiffs in the case will each receive $5,000. The attorneys representing the plaintiffs will receive 30% of the settlement amount, or $675,000. The remaining funds will be distributed evenly among all of the class members who opt in to receive the settlement.
Based on an expected opt-in rate of about 5% of the 242,000 potential class members, each plaintiff is expected to receive $101, according to the preliminary settlement agreement.