Did you receive a notice from Freedom Credit Union? Did you receive a mail about a class action settlement to resolve Freedom Credit Union repossession $1.7M Lawsuit? This review will help you partake in the class action settlement after confirming the authenticity of the mail.
What Is Freedom Credit Union repossession $1.7M Class Action Lawsuit?
Freedom Credit Union agreed to pay $1.7 million to resolve claims it violated borrowers’ rights by failing to provide proper repossession notices.
The case is Ibeleme v. Freedom Credit Union, Case No. 002461, in the Court of Common Pleas for Philadelphia County.
What Is This Class Action All About?
Plaintiffs in the class action lawsuit claim Freedom Credit Union sent them insufficient repossession notices when their vehicles were being repossessed. As a result, borrowers were allegedly misled about storage costs and deficiency balance calculations.
Freedom Credit Union is a Massachusetts-based credit union with branch and ATM locations throughout the east coast.
Freedom Credit Union hasn’t admitted any wrongdoing but agreed to a $1.7 million settlement to resolve the repossession class action lawsuit.
Under the terms of the repossession settlement, Freedom will forgive over $2.73 million in disputed deficiency balances and will request that credit reporting agencies remove settled loans from consumer auto loan histories. Eliminated balances may result in a 1099-C tax form, which may have tax implications.
In addition, the net settlement fund will be used to distribute proportional payments to class members based on their loan details. Class members received a payment estimate on their mailed settlement notice. Payments over $600 will result in a 1099 tax form and may have tax implications.
If funds remain in the cash fund after the first round of checks, a second round of payments may be distributed. However, if residual funds are less than $50,000, the money will be paid to Pennsylvania Interest on Lawyers Trust Account and Community Legal Services of Philadelphia. The settlement website is FreedomCreditUnionRepoSettlement.com.
Who Is Eligible?
This settlement benefits all borrowers who purchased a vehicle and financed their vehicle through Freedom, and whose vehicle was later repossessed by Freedom from a Pennsylvania address between June 30, 2015, and July 26, 2021.
It also benefits a deficiency notice subclass of class members whose vehicles were sold or auctioned by Freedom but left a surplus or claimed deficiency balance.
How To Be Part of This Settlement
No claim form is required to benefit from the settlement. Class members will automatically receive settlement benefits if they do not exclude themselves and can update their addresses on the settlement website to ensure they receive their payments to the correct location.
The deadline for exclusion and objection is July 28, 2023.
What Is The Pay For This Settlement?
The pay for this settlement varies and the proof of purchase is not necessary.
Conclusion
As you submit your claim to the settlement website, just like Froedtert Health Inc. class action settlement we have reviewed, you’re doing so under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. The deadline for exclusion and objection is July 28, 2023.
