Santa Clara, CA: Two settlement agreements totalling $9.25 million have received preliminary approval, potentially ending a class action lawsuit against American Express Co., and American Express Centurion Bank (together AmEx), brought by consumers who alleged the company violated the Telephone Consumer protection Act (TCPA).
In the first, The Honorable John Z. Lee gave preliminary approval to a $8.25 million Settlement Agreement (Telemarketing Settlement) covering 798,000 class members who alleged that they had received automated telemarketing calls from AmEx and/or a third party (Alorica) hired by Amex in violation of the Telephone Consumer Protection Act (TCPA).
In the second, Judge Zee approved a $1 million Settlement Agreement involving 3,200 class members who had alleged that AmEx violated the TCPA by having a third party (West Asset Management, Inc.) make automated debt collection calls to their cell phones.
The Telemarketing Settlement Class is defined as all persons nationwide within the United States who, on or after July 3, 2009 through March 15, 2016, received a telemarketing call from Alorica Inc. (or its agents or affiliates) on behalf of American Express, in connection with the marketing of American Express small business charge and/or credit cards to potential customers, to a cellular telephone number through the use of an automatic telephone dialing system, predictive dialer and/or artificial or prerecorded voice.
Under the terms of the settlement, American Express must create a non-reversionary Telemarketing Settlement Fund of $8,250,000.
The Telemarketing Settlement Agreement provides that Plaintiff may petition the Court for a Class Representative service award, and AmEx has agreed not to object so long as the award sought does not exceed $10,000.
The Debt Collection Settlement Class is defined as all persons nationwide within the United States who, on or after July 3, 2009 through December 31, 2013, received a call from West Asset Management, Inc. (or its agent or affiliate) in reference to a debt owed to American Express, to any of the 3,219 cellular telephone numbers on the Class List through the use of equipment alleged to be an automatic telephone dialing system, a predictive dialer and/or an artificial or prerecorded voice, where (i) the call was made in connection with the account of a “deceased customer” and/or (ii) the person called did not have a contractual relationship with American Express.
The Debt Collection Settlement requires American Express to create a non-reversionary Debt Collection Settlement Fund of $1,000,000. The Debt Collection Settlement Agreement provides that Plaintiff may petition the Court for a service award, and AmEx has agreed not to object so long as the award sought does not exceed $5,000 each.
The settlements are subject to final court approval. The case is Ossola v. Am. Express Co., (Northern District of Illinois, No. 13-CV-04836).
