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A $1.1 million settlement has been reached in a TCPA class action lawsuit, accusing Education Financial Solutions of wrongfully using an autodialer to contact consumers with advertisements and promotions.
Education Financial Solutions LLC, doing business as Campus Debt Solutions, has agreed to pay $1.1 million to settle a TCPA class action lawsuit against them. The class action alleged that Campus Debt Solutions used an autodialer to contact consumer cell phones with advertisements for loan consolidation or loan forgiveness.
The Telephone Consumer Protection Act (TCPA) protects consumers by prohibiting robocalls, unsolicited text messages, calling numbers on the National Do Not Call Registry, sending junk faxes, and more. Under TCPA, consumers can seek between $500 and $1,500 in damages for each violation of the law.
Plaintiff Winifred Cabiness sought to recover damages under TCPA in her class action. Although the case did not go to trial, the settlement will benefit her and other consumers damages by the alleged TCPA violations.
Of the $1.1 million settlement, Class counsel plans to request 30 percent, approximately $330,000, in court costs and attorneys’ fees incurred throughout the course of the litigation. Cabiness will also receive a $10,000 service award for her service as the Class representative.
The rest of the settlement fund will benefit Class Members. Eligible Class Members include those individuals who received a phone call to their cell phone from Campus Debt Solutions advertising loan consolidation or loan forgiveness on or after Oct. 16, 2013.
Those who are eligible for compensation under the settlement fund should have received an email or mail notice of their eligibility. However, if you believe you are eligible for the settlement, and did not receive a notice, you should update your address on the settlement website.
Class Members are estimated to receive $20, although that number may increase or decrease based on the number of valid claims filed.