Facts

Plaintiffs brought a class action against Santander Consumer USA Inc. under the Unfair Competition Law and the Rees-Levering Automobile Sale Finance Act.

PLAINTIFFS' CONTENTIONS:
Plaintiffs alleged that they purchased vehicles and entered into conditional sale contracts, which at some point defendant became the holder of. Plaintiffs alleged that after defendant repossessed their cars, defendant sent a Notice of Intent to Dispose of Motor Vehicle that failed to contain certain required disclosures. Plaintiffs further alleged that defendant sold the repossessed vehicles and falsely represented to plaintiffs that they owed a deficiency balance and collected or attempted to collect such deficiency balance from plaintiffs.

DEFENDANT'S CONTENTIONS:
Defendant denied the allegations of the plaintiffs' claims.

Result

The parties reached a settlement agreement and the court granted preliminary approval of the class action settlement. Pursuant to the settlement, defendant agreed to stop collection on settlement class members' accounts and dismiss any pending legal action against settlement class members. Defendant also agreed to change the accounts of class members who were assessed a deficiency balance to a zero balance further agreed to inform credit reporting agencies to delete relevant trade lines. Defendant further agreed to provide a 60 percent refund of amounts paid by class members towards a deficiency balance. Defendant also agreed to pay the class counsel $350,000 in attorney fees and costs.

Other Information

FILING DATE: April 8, 2013.