District Court approves final call-taping settlement
On August 21, the U.S. District Court for the Central District of California issued an order granting final approval of a settlement reached between a class of California consumers and a mortgage company. The approval of the settlement resolves allegations that the company contacted delinquent borrowers and had conversations involving personal and confidential financial information without first informing the consumers that the conversations would be recorded. The plaintiffs filed a complaint in 2015 alleging that the company violated sections of the California Penal Code that prohibit the intentional recording of conversations without obtaining the knowledge or consent of the other party. According to the plaintiffs, the company used scripts that instructed its agents to carry on discussions with consumers prior to providing the call recording advisory. Among other provisions, the settlement terms award $1.6 million in attorneys’ fees, approximately $25,046 in reimbursement of litigation expenses, service awards of $10,000 to each class representative, and up to $200,000 to the settlement claims administrator for its work in distributing settlement money to class members (the company is required to establish a settlement fund in the amount of $6.5 million).