Morgan Stanley Unit Says Recorded Calls Were Legal

Law360, New York (August 12, 2011, 5:20 PM EDT) -- A Morgan Stanley mortgage servicing unit on Friday asked a California federal judge to dismiss a class action over phone conversations allegedly recorded without customer consent, saying the calls were made in Texas where the practice is legal.

California is one of the few states with legislation that requires all parties in certain phone calls to give consent if the conversation is to be recorded. State resident Jo Ann Zephyr filed suit in May against Saxon Mortgage Services Inc. over her phone calls with Saxon that...
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