Electro Savings Credit Union agreed to provide $4.6 million in benefits to resolve claims that it wrongfully repossessed vehicles without sufficient notices.
The settlement benefits consumers who had a collateralized loan with Electro Savings Credit Union, whose collateral was repossessed since Jan. 7, 2013, and who received a Notice of Our Plan to Sell Property, Personal Property Letter and/or another similar notice.
The settlement does not include individuals who filed for bankruptcy and discharged their deficient balance as part of the proceedings or those whose deficient balances were resolved in a court judgment or settlement.
Electro Savings Credit Union is a non-for-profit financial institution that offers checking and savings accounts along with lending options, such as auto loans, mortgages and home equity loans. Members of the credit union enjoy benefits such as cash rewards and high savings interest rates.
According to a class action lawsuit, Electro Savings Credit Union failed to meet the requirements for repossession notices when repossessing consumer property. As a result, the plaintiffs contend, the repossessions were unlawful.
The class action lawsuit specifically challenged the notices under Missouri’s Uniform Commercial Code. This code requires lienholders to send specific notices detailing customers’ rights and options. This includes a Notice of Default & Right To Cure, Notice of Our Plan to Sell Property and Notices of Sale and Possible Deficiencies.
Electro Savings Credit Union hasn’t admitted any wrongdoing but agreed to resolve these allegations with a settlement worth $4.6 million. This includes a $900,000 cash fund, $1.7 million in write offs and other benefits.
Under the terms of the settlement, Electro Savings Credit Union will no longer attempt to collect money on debts connected to repossessed property. The credit union will eliminate any remaining deficiency balances and close any related accounts.
Additionally, Electro Savings will delete deficiency balance information from credit reports with the three major credit-reporting companies (Equifax, Experian and TransUnion).
The deadline for exclusion and objection is July 14, 2022.
The final approval hearing for the settlement is scheduled for Aug. 9, 2022. Class members are not required to attend this hearing, but have the opportunity to do so if they provide prior notice.
No claim form is required to benefit from the settlement. Class Members will automatically receive settlement benefits.
Any communications will be sent to class members at their address, which they can update on the settlement website.