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 FinanceLLC, 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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Court Orders Notice of Settlement with ACC Consumer Finance
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.
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.