BMW Financial Services has agreed to settle a class action involving its repossession practices. Bryan Kemnitzer and Nancy Barron joined with Mark Chavez of the law firm Chavez & Gertler in litigating the matter. On September 23, 2009, the Honorable Phyllis Hamilton, judge of the U.S. District Court for the Northern District of California (San Francisco) ordered conditional certification of a class and preliminary approval of the class action settlement reached between BMW Financial Services and class representative Derek Friedrichs.  On January 20, 2010, the settlement obtained final approval. The court found that plaintiffs had obtained substantial benefit to the class.

The class is defined as all buyers: (1) who purchased a motor vehicle in California and entered into a conditional sales contract with any person or entity that was assigned to BMW Financial; (2) whose motor vehicle was repossessed or voluntarily surrendered in California, and was not reinstated or redeemed; and (3) who were issued an NOI by BMW Financial between August 25, 2004 and September 5, 2008. Excluded are those persons who have filed bankruptcy proceedings, accounts of individuals who are deceased, those persons who signed releases with BMW Financial from any liability for Deficiency Balance payments on their accounts, and those against whom BMW obtained judgments. (more…)

Automotive lender Bay Federal Credit Union agreed to settle a repossession class action settlement, which received final approval in December 2009.  Stephens v Bay Federal Credit Union (San Francisco Superior Court). Distribution will occur shortly after the time for appeals has passed. The settlement received preliminary approval in July 2009 and Class Notice was mailed. There were no objections and no appeal or other delay is expected.

Class members are California consumers (1) who purchased a motor vehicle in California and as part of that transaction entered into a purchase contract with any person or entity which contract was later assigned to Bay Federal Credit Union; (2) whose motor vehicle was repossessed or voluntarily surrendered in California, and was not reinstated or redeemed; and (3) who were issued a Notice of Intent to Sell Motor Vehicle at any time between August 4, 2004 to January 13, 2009. (more…)

Ford Motor Credit Company (“FMCC”) has agreed to settle a consumer class action involving vehicle repossessions. In the case Ford Motor Credit Company v O’Neal (San Diego Superior Court Case No. 37-2007-00077225-CL-CL-SC), consumers alleged FMCC failed to provide post-repossession notices that comply with California law. Although it denies the allegations, FMCC will provide substantial relief to the 15,877 class members, including a promise to stop collection of approximately $110,810,774.38 in outstanding deficiency balances and to refund the full amount that class members who submitted claims have already paid on their deficiencies. (more…)