Facts

From June 25, 2016 to June 25, 2020, consumers who had their vehicle repossessed in California received a Notice of Intent by SAFE 1 Credit Union. SAFE 1 collected deficiency balances from consumers after a subsequent sale of a vehicle. Raymond Marrero Brought a class action, alleging SAFE 1's NOI did not comply with California's Automobile Sales Finance Act.

PLAINTIFFS' CONTENTIONS: Plaintiffs contended defendant is not entitled to collect the deficiency balance remaining after a subsequent sale of the vehicle because defendant's NOI did not comply with California's Automobile Sales Finance Act. Plaintiffs contended defendant's practice of collecting deficiency balances violated the Reese-Levering Automobile Sales Financing Act, Unfair Competition Law, and Business and Professions Code Section 17200.

DEFENDANT'S CONTENTIONS: Defendant denied all of the contentions.

Result

In order to resolve the case, SAFE 1 waived the deficiency balances on 611 of its members' (Class Members) accounts in the total amount of $4,829,867.41. Class Members who paid any amount towards a deficiency balance after their vehicle was repossessed will receive a check for 100 percent of the amount they actually paid SAFE 1.