In a case involving post-repossession notices, Alameda County Superior Court has issued preliminary approval of a class action settlement. Alliant Credit Union has agreed to settle the case of Veronique McCoy and Bernardo Castro v Alliant Credit Union, Case No. RG 09-444283, with significant benefits to settlement class. Representative plaintiffs Veronique McCoy and Bernardo Castro alleged that Alliant Credit Union failed to provide post-repossession notices that comply with California law. 
Although it denies the allegations, Alliant will provide substantial relief to the 640 class members, including a promise to stop collection of approximately $7,370,853 in outstanding deficiency balances and to refund the full amount that class members have already paid on their deficiencies, if any. The aggregate refund is $139,660.54. There is no claims process.
Bryan Kemnitzer and Nancy Barron of the San Francisco office of Kemnitzer, Barron & Krieg, and Mark Chavez, of Chavez & Gertler, Mill Valley, California, represent the class.
The case arose out of the plaintiffs’ purchase of vehicles from dealers who arranged financing through Alliant Credit Union. Veronique McCoy purchased a 2005 Mazda on July 21, 2004 from Enterprise Rent-A-Car and Bernardo Castro purchased a 2004 Chevrolet Avalanche on November 16, 2007 from Sacramento Auto Plaza. Each borrower eventually fell behind in their payments and their vehicles were repossessed – McCoy’s on September 5, 2008 and Castro’s on October 11, 2008. Thereafter Alliant Credit Union sent them a “notice of intent” to sell the vehicle. Plaintiffs contend that this NOI failed to provide the borrowers certain information that would enable them to know exactly what they had to do to reinstate or redeem the contract in time to get their vehicle back and avoid auction.
The Class includes borrowers to whom Alliant Credit Union mailed an NOI between April 1, 2005 and May 1, 2009. If you are a member of this class, you should receive a class notice shortly after April 9, 2010.
Lobel Financial Repossession Class Action Settles
Post-repossession notices are the subject of a series of class actions coordinated in Sacramento Superior Court (LOBEL FINANCIAL Auto Cases, Case No. JCCP 4563). On March 26, 2010, Judge Michael P. Kenny issued preliminary approval of a class action settlement collectively resolving the matters. Lobel Financial had originally sued borrowers Ivon Lara and Jaime Penuela, filing separate complaints against them in Sacramento and Contra Costa Counties, respectively. Kemnitzer Barron & Krieg answered those actions and filed nearly simultaneous class action cross-complaints challenging the post-repossession notices on which alleged debts were based.
The class is defined as all persons: who purchased a Motor Vehicle in California and as part of that transaction entered into a Conditional Sales Contract assigned to Lobel Financial; whose Motor Vehicle was repossessed in California; who were issued an NOI by Lobel Financial from July 7, 2004 to October 1, 2008; who were assessed a deficiency balance ; and against whom Lobel Financial had not obtained a judgment as the settlement date.
Class Notice is to be mailed to all settlement class members around April 20, 2010. Nancy Barron and Bryan Kemnitzer, of the law firm Kemnitzer Barron & Krieg, along with Alexander Trueblood of the Trueblood Law Firm, are class counsel. If you have any questions concerning this case, feel free to contact us.