(In about half of the cases in the FTC data set, direct notices, by mail or email, were supplemented by notices in online or traditional media.) But many small-dollar consumer cases, Frank said, no class members receive direct notices. The commission looked only at class actions in which at least some class members received direct notice of the settlement. The 9% median class action claims rate falls within that range.īut as class action watchdog Ted Frank of the Hamilton Lincoln Law Institute pointed out in an email to me, there’s a crucial caveat to keep in mind about the FTC data on class action claims rates. The FTC study noted that when the commission administers a claims process to find consumers entitled to repayments from companies that have settled consumer fraud claims by the government, its claims rate varies from 5% to 20%. The Fitzpatrick study isn’t exactly on point because in all but two of the cases it examined, money was distributed to class members’ bank accounts without a claims process. The CFPB reported a median claims rate of 8%. Mayer Brown found claims data on just five of the small-dollar cases in its study, with rates ranging from less than 1% to 12%. Chamber of Commerce a 2015 report by the Consumer Financial Protection Bureau on 105 class actions involving financial products and a 2015 paper in which law professor Brian Fitzpatrick of Vanderbilt and plaintiffs' lawyer Robert Gilbert examined consumers’ recoveries in 15 class actions against banks. As the FTC recounts, the commission found only three previous studies of class action claims rates: a 2013 analysis of 40 consumer cases by Mayer Brown for the U.S. On its face, the FTC report’s median claims rate of 9% is higher than claims rates previously reported in the scant literature on consumer class action settlements.
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