Judge Grants $175k Settlement in FDCPA Case

A District Court judge in California has granted final approval of a $175,000 settlement in a class-action Fair Debt Collection Practices Act case.

A copy of the ruling in the case of Acosta v. Patenaude & Felix can be accessed by clicking here.

The plaintiff filed suit after receiving a collection letter from the defendant attempting to recover an unpaid retail credit card debt. The letter, which was dated April 22, 2019, included a “Due Date” of May 16, 2019, which was 24 days later, and still within the 30-day window for the individual to seek validation of the debt under the Fair Debt Collection Practices Act.

The parties announced to the court in February that they had reached a settlement in the case. A preliminary settlement was approved in May and a final hearing was held earlier this month to iron out the final details.

About 32,000 individuals submitted a timely claim form will receive a pro rata share of what is left after the named plaintiff and her attorneys receive their share. If all of the class members participate, they will receive about $4 each. The named plaintiff will receive $750 and the plaintiff’s attorneys will receive $40,658.50, or 23% of the settlement amount, according to the final settlement approval. .

Noting that nobody to date has objected to the settlement and only 20 class members have opted out of it, Judge Cathy Ann Bencivengo of the District Court for the Southern District of California, approved the settlement. To date, 4,209 members of the class have submitted valid claim forms, according to the order granting approval of the settlement.

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