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.