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.
Mr. Friedrichs bought a BMW on August 1, 2004, and financed the deal through a loan from BMW’s captive finance arm, BMW Financial. When he missed one or more payments, the lender seized the car in late July 2005. A Notice of Intent to sell the vehicle followed. The vehicle was then sold and Mr. Friedrichs was charged a large deficiency amount, which BMW Financial claimed was the difference between the amount he still owed on the contract and the amount for which they sold the car. We later filed suit on behalf of him and others, on the grounds that this Notice of Intent did not comply with California law in several material respects. After extensive litigation, discovery and investigation, BMW Financial agreed to settle the case before trial.
The settlement class members fall into two categories depending on the status of their accounts. Approximately 175 members of the settlement class have paid some or all of the deficiency amount BMW Financial charged them. These class members will get back a refund of the full amount that they paid, a total of about $550,000. In addition, about 2,450 class members did not pay their deficiency. BMW agrees to stop any collection of these amounts, and the total amount involved is about $35,000,000. BMW Financial’s agreement to cease collection activity includes a limited injunction against certain related business practices. BMW Financial also agrees to stop initiating any negative credit reporting concerning these accounts.
Distribution of class benefits will follow shortly.
If your car or truck was recently repossessed, you may have a defense to the deficiency, even if you were in default. If this has happened to you, contact us.
Federal Court Issues Approval Order in BMW Financial Class Action
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.
Mr. Friedrichs bought a BMW on August 1, 2004, and financed the deal through a loan from BMW’s captive finance arm, BMW Financial. When he missed one or more payments, the lender seized the car in late July 2005. A Notice of Intent to sell the vehicle followed. The vehicle was then sold and Mr. Friedrichs was charged a large deficiency amount, which BMW Financial claimed was the difference between the amount he still owed on the contract and the amount for which they sold the car. We later filed suit on behalf of him and others, on the grounds that this Notice of Intent did not comply with California law in several material respects. After extensive litigation, discovery and investigation, BMW Financial agreed to settle the case before trial.
The settlement class members fall into two categories depending on the status of their accounts. Approximately 175 members of the settlement class have paid some or all of the deficiency amount BMW Financial charged them. These class members will get back a refund of the full amount that they paid, a total of about $550,000. In addition, about 2,450 class members did not pay their deficiency. BMW agrees to stop any collection of these amounts, and the total amount involved is about $35,000,000. BMW Financial’s agreement to cease collection activity includes a limited injunction against certain related business practices. BMW Financial also agrees to stop initiating any negative credit reporting concerning these accounts.
Distribution of class benefits will follow shortly.
If your car or truck was recently repossessed, you may have a defense to the deficiency, even if you were in default. If this has happened to you, contact us.