Category Archives: Class Actions

Sacramento Superior Court Grants Preliminary Approval to Class Action Settlement

By admin | Published: March 6, 2012

Class notice goes out this week in connection with settlement of Kimiya Young and Patricia Lee v Rudolph Incorporated, Sacramento Superior Court Case No. 34-2009-00064451.  Kemnitzer, Barron & Krieg filed this class action against Rudolph Incorporated challenging its post-repossession practices.  Rudolph will extinguish $1,761,322.31 in outstanding debt for each of the 385 settlement class members.  The class is made up of consumers who purchased and financed a motor vehicle a pursuant to a retail installment sales contract that was assigned to Rudolph or its affiliates; whose vehicle was repossessed; and to whom Rudolph sent a deficiency notice between November 19, 2005 and December 13, 2011. The class excludes approximately 45 consumers who Rudolph sued and obtained a judgment before September 10, 2010.  A handful of consumers (about 5) paid some amount of money toward the deficiency, and they will automatically get a full refund for the amount they paid.
All class members will receive the benefit of full debt relief and Rudolph promises to notify the credit reporting agencies that the negative trade line is to be deleted, thereby clearing the class members credit history of this alleged debt.

Final approval is expected later this spring.

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Final Approval in Richardson v Wells Fargo

By admin | Published: February 22, 2012

On July 1, 2011, the Superior Court for the City and County of San Francisco granted final approval and certified a settlement class in the case entitled Richardson et al v Wells Fargo Auto Finance, Inc. et al. (Case No. CGC-08-481662).  Class representatives Terry Frank Richardson and Calletano Rueda brought a consumer class action complaint against Wells Fargo Auto Finance, Inc., Wells Fargo Financial California, Inc., and Wells Fargo Bank, N.A. (collectively “Wells Fargo”) alleging that Wells Fargo had violated California consumer protection law in the way it had handled the sending of a statutory notice of consumers’ right to reinstate or redeem their contracts, after repossession and prior to sale of their vehicles, which Wells Fargo held as collateral for an automotive loan.

The class was defined as California consumers who had purchased vehicles on credit, whose contracts were assigned to Wells Fargo, repossessed or voluntarily surrendered after default, and who were issued a post repossession notice by Wells Fargo or its subsidiary from November 5, 2004 to December 8, 2008, and were then assessed a deficiency balance.  The class does not include certain accounts that were the subject of bankruptcies or deficiency judgments in court, and it is further limited to borrowers whose accounts were still owned by Wells Fargo as of January 31, 2011.

A deficiency balance is the difference between what was owned on the vehicle and the amount it was sold (usually at wholesale auction) after the repossession.  That amount can be hundreds or thousands of dollars and often comes as a surprise to borrowers who have just lost their car.  The statutory notice, sent before the vehicle is sold at auction, is intended to inform the borrower of just exactly what they have to pay, and to whom, to get the repossessed car back, and avoid the assessment of such a deficiency.

The settlement class includes approximately 15,077 California consumers.

Despite denying any liability, Wells Fargo agreed to extinguish approximately $237,441,000.00 in deficiency balances.  It agreed to notify the three major credit companies that it had zeroed-out the negative all of these debt balances and to recall the accounts from internal collection departments and outside collection agencies.

In addition, Wells Fargo estimated that settlement class members had paid approximately $6,400,000.00 in deficiency balances up to the time of the settlement.  It agreed to pay back 75% of this amount on a claims basis.

The class was represented by Bryan Kemnitzer and Nancy Barron, of the law firm Kemnitzer, Barron & Krieg in San Francisco; and Mark Chavez and Nance Becker of the law firm Chavez & Gertler in Mill Valley, California.

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Checks Have Been Sent in California Community Credit Union Settlement

By admin | Published: February 21, 2012

On September 13, 2011, the Sacramento Superior Court certified a settlement class and issued final approval of the class action settlement in California Community Credit Union v Chapman (Case No. 34-2009-0054626). When California Community Credit Union sued Chapman for a deficiency after sale of his repossessed vehicle, he filed a cross-complaint on behalf of himself and others, alleging that the Credit Union had violated California consumer protection law in the way it had handled the repossession.

The settlement class involved forty-three California borrowers, who bought a car or truck from July 10, 2005 to February 10, 2011 from a dealer on credit, and whose financing was assigned to California Community Credit Union.

Pursuant to the terms of this settlement, California Community Credit Union agreed to extinguish approximately $366,043.00 in debt in the form of outstanding deficiency balances for all affected borrowers.  It agreed not to make any further efforts to collect that money from consumers who are members of the settlement class.

At the time of the settlement, California Community Credit Union had collected about $14,904.00 in deficiency balances from the class members.  This amount was to returned in full, in the form of refund checks.  The checks were mailed to all class members who were entitled to a refund of the amount they paid after repossession.  There was no claims process and the refund checks were automatically sent to those entitled to restitution.

In addition to the monetary relief described above, California Community Credit Union promised to notify the three major credit reporting agencies that there was a zero balance on the subject account.  If you received notice of this class action, you should check your credit rating for this relief.

Kemnitzer, Barron & Krieg served as attorneys for the class.

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Distribution of Class Action Benefits in Morrison, et al v Credit Acceptance Corporation

By admin | Published: February 13, 2012

The class action settlement in Morrison, et al v Credit Acceptance Corporation, Case No. C10-00549PJH received final approval from the United States District Court for the Northern District of California on January 12, 2011.  The settlement class of 892 consumers was defined to include California vehicle purchasers whose finance contract was assigned to Credit Acceptance Corporation and were issued a post-repossession notice by Credit Acceptance from December 8, 2005 to January 18, 2010.

Class representatives Andre Morrison, Erlinda del Rosario and Marie del Rosario, on behalf of themselves and the other class members, alleged that the notice failed to comply with California’s Rees-Levering Act and that Credit Acceptance was thus not allowed to collect a deficiency judgment later.  Credit Acceptance denied the allegations, but agreed to settle, with full relief to the class.

Pursuant to the terms of the settlement, Credit Acceptance extinguished approximately $5,096,065 in collective debt in the form of outstanding deficiency balances for all class members.  It agreed not to make any further efforts to collect that money from consumers who are members of the settlement class.  At the time, Credit Acceptance had collected $34,114 from borrowers, and it refunded this amount in full.  It further agreed to send instructions to credit reporting agencies to delete any negative trade line concerning the deficiency charges.  There was no claims process and the refund checks were automatically sent to those entitled to restitution.

The class was represented by Bryan Kemnitzer and Nancy Barron, of the law firm Kemnitzer, Barron & Krieg in San Francisco; Mark Chavez of the law firm Chavez & Gertler in Mill Valley, California; and Quyen Tu of the Public Law Center in Santa Ana, California.

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Distribution of Class Action Benefits in Willoughby v DT Credit Corporation

By admin | Published: February 13, 2012

On June 30, 2008 the Los Angeles Superior Court issued final approval of the consumer class action settlement in Willoughby v DT Credit Corporation (Case No. BC 326262). The settlement class involved California borrowers, who bought a car or truck from July 7, 2001 to August 1, 2006, on credit and whose contract was assigned to DT Credit or a related entity.

The settlement provided substantial and significant benefits to every class member.

Pursuant to terms of this settlement, DT Credit extinguished approximately $77,878,974.33 in debt in the form of outstanding deficiency balances for all 13,342 affected borrowers. It agreed not to make any further efforts to collect that money from consumers who are members of the settlement class.

At the time of the settlement, DT Credit and or its related entities, including companies doing business under the names Ugly Duckling and Drive Time, had collected about $180,033.00 in deficiency balances from the class members.  This amount was returned in full, in the form of refund checks. The checks were mailed to all class members who were entitled to a refund of the amount they paid after repossession. There was no claims process and the refund checks were automatically sent to those entitled to restitution.

Kemnitzer, Barron & Krieg partners, Bryan Kemnitzer and Nancy Barron, were class counsel, along with Alexander Trueblood of the Trueblood Law Firm.

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Distribution of Class Action Benefits in Meza v ACC Consumer Finance

By Nancy Barron | Published: November 15, 2010

The Alameda Superior Court issued final approval of the consumer class action settlement in Meza v ACC Consumer Finance (Case No. RG09458893) on August 6, 2010. The checks were mailed to all class members who were entitled to a refund of the amount paid after repossession. There was no claims process and the refund checks were automatically sent.

If you were one of the class members who received a settlement check, be sure to cash the check promptly.

If you did not pay any money toward the deficiency ACC Consumer Finance claimed you owed, but you received class notice in this case, you are still entitled to significant benefits of debt relief. Pursuant to terms of this settlement, ACC Consumer Finance extinguished approximately $14,988,490.27 in debt in the form of outstanding deficiency balances. It cannot take any further actions to collect that debt. Class members should order a credit report sometime between January and March 2011 to make sure the negative trade line concerning the repossession account has been cleared.

Represented by Paul Meza and Jay Pelkey, the class of about 1,623 individuals is defined as all persons who purchased a vehicle, and as part of that transaction entered into an agreement subject to California’s Rees-Levering Automobile Sales Finance Act; whose contract was assigned to ACC Consumer Finance; whose vehicle was repossessed or voluntarily surrendered; who were issued an NOI by ACC Consumer Finance during the Class Period (June 22, 2005 to the date of settlement); and against whose account a deficiency balance was assessed in any amount.

Bryan Kemnitzer and Nancy Barron, of the law firm Kemnitzer Barron & Krieg LLP, along with Mark A. Chavez and Nance F. Becker of the law firm Chavez & Gertler, represent the class.

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Checks Have Been Sent in Alliant Credit Union Settlement

By Nancy Barron | Published: November 15, 2010

California borrowers received substantial benefits from settlement in the consumer class action entitled McCoy v Alliant Credit Union (Case No. RG09444283), which received final approval from the Alameda County Superior Court on or about July 30, 2010. Once the appeals period expired, refund checks were mailed to those class members who are entitled to their money back pursuant to terms of the settlement. 

 If you were one of about 521 class members who received a settlement check, be sure to cash the check promptly. 

If you did not pay any money toward the deficiency Alliant Credit Union claimed you owed, but you received class notice in this case, you are still entitled to significant benefits from this settlement.  Alliant Credit Union agreed to extinguish approximately $7,370,853.36 in outstanding deficiency balances. It has totally and permanently stopped collection activity on all those accounts. Class members should order a credit report sometime between December 2010 and March 2011 to make sure the negative trade line concerning the repossession account has been cleared.

The class is defined as persons who purchased a vehicle in California; whose loan was assigned to Alliant Credit Union, whose vehicle was repossessed; who received a Notice of Intent from Alliant Credit Union between April 1, 2005 and May 1, 2009; who did not reinstate or redeem the contract; whose vehicle was sold for less than the balance due, resulting in a deficienc; and who did not have a judgment obtained against them prior to April 1, 2009.

 
Bryan Kemnitzer and Nancy Barron, of the law firm Kemnitzer Barron & Krieg LLP, along with Mark A. Chavez and Nance F. Becker of the law firm Chavez & Gertler, represent the class. 
 

 
 
 
 
 

 

 

 

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Lobel Financial Repossession Class Action Settles

By Nancy Barron | Published: April 2, 2010

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.

Although Lobel Financial denies any wrongdoing, it will provide significant relief to the settlement class. According to the declaration of general counsel Gary Lobel, there are 9,159 members of the class whose outstanding deficiency balances total approximately $43,808,147. The settlement halts all collection activity on those accounts. Lobel has collected approximately $407,563 in deficiencies from class members already to date. Those class members who paid money toward their deficiencies and file a claim as set forth in the class notice will get a refund of  the amount they paid.  In addition, Lobel Financial will waive and extinguish the  entire $43,808,147 in alleged deficiencies and instruct credit reporting agencies to delete the Lobel Financial tradelines of all settlement class members.  In other words, with respect to this debt, the slate will be wiped clean.

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.

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Alliant Credit Union Settles Class Action Concerning Repossession Notices

By Nancy Barron | Published: March 29, 2010

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.

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Court Orders Notice of Settlement with ACC Consumer Finance

By Nancy Barron | Published: March 29, 2010

On March 24, 2010, Judge Robert B. Freedman of Alameda County Superior Court issued preliminary approval of a class action settlement in a case involving repossession notices. The lawsuit is entitled Paul Meza and Jay Pelkey v ACC Consumer Finance LLC, et al Action No. RG09458893 on March 24, 2010.

Defendant ACC Consumer Finance has agreed to resolve the case, with significant benefits to settlement class. Representative plaintiffs Paul Meza and Jay Pelkey alleged that ACC Consumer Finance failed to provide post-repossession notices that comply with California law. Although it denies the allegations, ACC Consumer Finance will provide substantial relief to the 1,595 settlement class members, including a promise to stop collection of approximately $15,319,728.96  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 $75,329.14. There is no claims process and the benefits will be automatic after final approval by the court.

 Bryan Kemnitzer and Nancy Barron of Kemnitzer, Barron & Krieg, and Mark Chavez, of the law firm Chavez & Gertler, Mill Valley, represent the class.

The case arose out of the plaintiffs’ purchase of vehicles from dealers who arranged financing through ACC Consumer Finance. Paul Meza purchased a 2004 Nissan Sentra, which was later repossessed when he fell behind in his monthly payments. Jay Pelkey bought a 2004 Ford Mustang, which was also repossessed. On April 24, 2008 ACC Consumer Finance sent Mr. Meza a post-repossession “notice of intent” to sell the Nissan  and on August 11, 2006 ACC Consumer Finance sent Mr. Pelkey a “notice of intent” to sell the Mustang. Among other things, plaintiffs contend that the form notices sent by ACC Consumer Finance 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 Settlement Class is defined as all persons:  (1) who purchased a Motor Vehicle, and as part of that transaction entered into an agreement subject to California’s Rees-Levering Automobile Sales Finance Act, Civil Code §2981, et seq.; (2) whose contract was assigned to ACC Consumer Finance; (3) whose Motor Vehicle was repossessed or voluntarily surrendered; (4) who were issued an NOI by ACC Consumer Finance during the Class Period (June 22, 2005 to the present); and (5) against whose account a deficiency balance was assessed in any amount. If you are a member of this class, you should receive a class notice shortly after April 19, 2010.

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