In December 2021, our firm resolved two class actions against large car lenders for what we alleged were unlawful post-repossession notices.
1. First, the court finally approved a settlement in a case (due to settlement terms we cannot mention the case name here), that provides for the creation of a $5 million cash fund and the forgiveness of approximately $11 million in repossession deficiency debts. We worked along side Bailey & Glasser LLP on this case.
2. Days later, in Piazza v. Santander Consumer USA, Inc., the court approved our settlement with Santander, which our firm handled alone. This settlement provides for the creation of a $5.6 cash fund and has already rendered approximately $31 million in consumer debts uncollectable.
In addition to the checks that class members will be receiving as part of these cases, we are especially pleased that Massachusetts residents will be relieved of more than $40 million in alleged deficiency debts in time for the holidays. Deficiency debts arising out of vehicle repossessions are burdensome, as already-cash-strapped consumers struggle to handle collection efforts arising out of often-large deficiencies without the very vehicle needed to earn a living.
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