Settlement Structure: Claims Made
Active: OpenCase Summary:
This settlement resolves a Pennsylvania class action against Clearview Federal Credit Union, alleging that it did not send borrowers proper notice of their rights when their vehicles were repossessed. The complaint alleged Clearview violated Pennsylvania laws by not sending Pennsylvania borrowers (1) a proper Repossession Notice after repossessing their vehicles, or (2) a proper Deficiency Notice after the repossessed vehicles were sold.Docket Number:
Company: Clearview Federal Credit Union
Filing Deadline: January 1, 2100
Class Period: September 6, 2013 to September 6, 2019
Objection Deadline: September 26, 2022
Exclusion Deadline: September 26, 2022
Final Approval Hearing: October 28, 2022Proof of Purchase:
You do not have to do anything if you were sent a Notice. Note, however, that any outstanding debt remaining after the auction of your repossessed vehicle will automatically be eliminated at final approval of the settlement, and that if the amount is more than $600, the IRS may consider it income. If you do not want your outstanding debt forgiven, you must submit an Election Not to Accept Deficiency Balance Debt Forgiveness form by September 26, 2022.Eligibility:
You may be eligible if you belong to either of the classes below. Note that both classes exclude individuals who filed a bankruptcy petition under Chapter 7 after the repossession or sale of their vehicles.
- The Repossession Notice Class is Pennsylvanians whose vehicles were repossessed by Clearview and (1) who were not sent a Repossession Notice which said that the consumer had a right to redeem the property at any time before Clearview sold it; or (2) who were sent a Repossession Notice which said that “You will no longer have the right to redeem the collateral after the first attempted sale,” or (3) who were sent a Repossession Notice which said that the charge for an accounting was more than $25; or (4) who were sent a Repossession Notice which said the debtor “will or will not, as applicable” owe a deficiency, between September 6, 2013 and September 6, 2019.
- The Deficiency Notice Class are class members whose vehicles were repossessed by Clearview and then sold, leaving a deficiency balance claimed due, and (1) who were not sent an explanation of the alleged deficiency stating that future debts, credits, charges, including additional credit service charges or interest, rebates, and expenses may affect the amount of the deficiency; (2) who were not sent a Deficiency Notice at all, between September 6, 2013 and September 6, 2019.
Benefits: (1) Distribution of the net settlement fund to class members. Multiple borrowers on the same loan will each receive a portion of the amount. (2) Waiver of post-repossession deficiency balances that Clearview claimed were due to it. (3) Request by Clearview that credit reporting agencies delete the credit reporting of your vehicle loan history.
Note that the IRS might consider a waiver of deficiency balance forgiveness for amounts over $600 as income, and you might be required to declare and pay tax on all or some of the amount. You should consult your tax advisor and, if you do not want this forgiveness, submit an Election Not to Accept Deficiency Balance Debt Forgiveness form by September 26, 2022.
Total Settlement Amount: $1,250,000Class Representative Proposed Incentive Fee:
Feinstein Doyle Payne & Kravec LLC
Flitter Milz PC
Sabatini Freeman, LLC
Claim Form: Election Form Not to Accept Deficiency Balance Forgiveness
Case Name: Cameron v. Clearview Federal Credit Union
Settlement Website: Clearview Repo Settlement Website
American Legal Claim Services, LLC
Cameron v. Clearview Federal Credit Union
c/o Settlement Administrator
P.O. Box 23648
Jacksonville, FL 32241