Facts

United Auto Credit Corp. sued Lawrence Mesgnon. Mesgnon, in turn, filed a putative class action against UAAC.

DEFENDANT/CROSS-PLAINTIFF'S CONTENTIONS:
Defendants were purchasers of motor vehicles who have had their vehicles repossessed or voluntarily surrendered. Plaintiff sent defendants Notices of Our Plan To Sell Vehicle that allegedly failed to comply with California regulations. Defendants also claimed plaintiff was not entitled to collect a deficiency on repossessed vehicles that were subsequently sold to a third party. Thus, defendants filed a cross-complaint against plaintiff for violations of the Civil Code of California and Business and Professions Code.

Result

The parties reached a settlement that provided both monetary and injunctive relief. As part of the settlement, eligible class members may be qualified to receive the actual deficiency amount paid to UACC. Others may be qualified to receive only a portion of that amount. UACC also agreed to cease collection efforts.