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The answer—I suspect—lies with the fact that this was all federally-backed debt. As TCPAWorld.com readers know, calls to collect on such debt were categorically exempted from the TCPA. That is until the Supreme Court ruled in AAPC that the exemption was unconstitutional.

In Perez v. Rash Curtis & Assocs., Plaintiff’s argued that the involvement of the litigation funder actually added value to the settlement because one retained counsel; Plaintiff’s lawyers asked the Court to have the class pay back the $5 Million.