Settlement Structure: Claims Made
Active: Open
Case Summary:Arkansas Federal Credit Union (AFCU) is settling a class action that was filed against it as a counterclaim, in response to collection actions AFCU had taken against the plaintiffs in this case. The complaint alleged that AFCU had violated state laws through the use of improper repossession notices or post-sale notices that did not meet the requirements of the Uniform Commercial Code.
Docket Number:72CV-21-1024
Company: Arkansas Federal Credit Union
Filing Deadline: January 1, 2100
Class Period: May 15, 2018 to July 23, 2021
Objection Deadline: November 15, 2022
Exclusion Deadline: November 15, 2022
Final Approval Hearing: November 17, 2022
Proof of Purchase:You do not have to provide proof. Presumably AFCU records will be used for verification.
Eligibility:You may be eligible if you are a person who
- Executed, co-signed, or guaranteed a finance agreement for a consumer automobile loan from AFCU,
- The collateral for the agreement was repossessed by AFCU or its agents, between May 15, 2018 and July 23, 2021,
- You were sent post-repossession notices of sale,
- You have not filed for bankruptcy or otherwise become a bankruptcy debtor since it was repossessed,
- You have not settled or paid in full the amount due on the finance agreement,
- You are not deceased, and
- You have not had a judgment entered against you about the finance agreement.
Benefits: (1) AFCU will stop all collection activities for your deficiency balance under your finance agreement. (2) AFCU will waive your outstanding balance or deficiency balance from your finance agreement after the repossession. (3) AFCU will request that the three main credit reporting agencies delete the negative credit reporting tradelines previously reported in connection with the finance agreements and will not provide adverse information for them in the future. (4) ACFU will pay for the attorneys’ fees and expenses and settlement costs for this case, and the class representatives’ compensation.
Note that the waiving of the balances formerly owing may have tax consequences. AFCU may issue a Form 1099-C reporting the waived balance, which may count as income.
Total Settlement Amount: $2,350,000 in waived deficiency balances
Class Representative Proposed Incentive Fee:$6,000 in total for two
Law Firms:
Corey D McGaha, PLLC
Law Office of Robert W. Murphy
Case Name: Arkansas Federal Credit Union v. Lenoria E. Haley and Walter T. Morris
Settlement Website: Haley-Morris Repo Settlement Website
Claims Administrator:
American Legal Claim Services, LLC
American Legal Claim ServicesLLC
P.O. Box 23650
Jacksonville, FL 32241