J.P. Morgan Chase Bank ("JPMC") reached a $2.25 million settlement agreement with a proposed class of plaintiffs that claim JPMC violated the Telephone Consumer Protection Act ("TCPA"). Plaintiffs allege that JPMC autodialed the cellphones of approximately 242,359 people from whom it sought to collect on mortgage and home equity line of credit accounts, after the people receiving the call had orally asked JPMC to stop calling. Plaintiffs claim the calls were made via an automatic telephone dialing system and/or using an artificial or prerecorded device. The plaintiffs filed an unopposed motion asking the court for preliminary approval of the agreement. The case is Barrow, et al. v. JP Morgan Chase Bank, N.A., case number 16-cv-03577-AT in the Northern District of Georgia.

The TCPA restricts the making of telemarketing calls and the use of automatic telephone dialing systems and artificial or prerecorded voice messages. In addition to telephone calls, the TCPA also restricts fax and text messages. In the motion filed with the court, JPMC denied that it violated the TCPA and all charges of wrongdoing. However, both sides cited the costs and risks of continuing with the litigation, like the potential award of treble damages or denial of class certification, as factors in favor of reaching an agreement. As TCPA litigation continues to increase, it is important for companies to review their compliance with the TCPA and other privacy regulations that affect communications with clients.

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