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Paramount Acceptance Debt Calls Violate TCPA, TDCA, Says Class Action

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This double-barreled class action claims violation of both the Telephone Consumer Protection Act (TCPA) and the Texas Debt Collection Act (TDCA). The complaint alleges that Peter A. KLC and Associates, PLLC, which does business as Paramount Acceptance, violated both these laws in placing debt collection calls to consumers’ cell phones.

Two classes have been defined for this action.

  • The TCPA Class is all persons to whose wireless phones Paramount placed a call, between October 22, 2014 and the date of class certification, using the dialing system at issue in this case, after the persons told Paramount that it did not have consent to call them.
  • The TDCA Class is all persons in Texas to whose wireless numbers Paramount placed a call, between October 22, 2016 and the date of class certification, using the dialing system at issue in this case, in an attempt to collect a consumer debt, after the persons told Paramount that it did not have consent to call them.

On or around November 17, 2017, Plaintiff Richard Cannon signed up for a thirty-day, no-obligation trial membership with Fitness Now, a gym in Watauga, Texas. The sign-up process required that he provide a payment card to the gym. He claims he did not sign up for an actual, paid membership with the gym.

According to the complaint, Cannon tried the gym out, but he was not satisfied with the quality of the gym and cancelled the trial membership on or around the day after he signed up for it. However, the complaint claims that he later began receiving e-mails saying that he owed payments to the gym. 

The complaint says that Paramount, a collection agency, also began calling Cannon’s cell phone, trying to collect the alleged debt. On multiple occasions, the complaint claims, Cannon spoke to Paramount and told the company to stop calling him and responded to e-mails in a similar way. The complaint claims that even if Paramount claims it had consent to call him, that consent was revoked the first time Cannon told the company to stop calling. 

On April 21, 2018, Cannon sent Paramount an e-mail that began, “I’ve called and told you all to stop contacting me. I’ve told you dozens of times to cease contact from me and my work already! I’ve said to stop with any type of correspondence[.]” When the calls continues, the complaint says, he sent a second e-mail.

In all, the complaint says, Paramount placed at least 52 calls to Cannon’s cell phone after he had asked the company to cease and desist. The complaint claims that the calls were made using an automated dialing system, which makes them a violation of the TCPA. They were also violation of the TDCA, which the complaint says forbids “causing a telephone to ring repeatedly or continuously, or making repeated or continuous telephone calls, with the intent to harass the person at the called number.”

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