Safe 1 Credit Union Repossession Notice $4.8M Class Action Settlement

Consumers who were issued a notice of intent (NOI) by Safe 1 Credit Union and had their vehicle repossessed or voluntarily surrendered and whose account had a deficiency balance may be eligible for a payment thanks to a class action settlement worth about $4.8 million.

A person is considered a Class Member if they are a California resident who purchased a motor vehicle in California pursuant to a conditional sales contract that was subsequently assigned to Safe 1 Credit Union, whose motor vehicle was repossessed or voluntarily surrendered to Safe 1 Credit Union, who was issued an notice of intent (NOI) by Safe 1 Credit Union any time between June 25, 2016, and June 25, 2020, and against whose account a deficiency balance existed following the disposition of the vehicle.

The exceptions are if those accounts were discharged in bankruptcy or the individual reinstated their contract or redeemed their vehicle.

Notices were sent to Class Members in April.

A class action lawsuit claimed Safe 1 Credit Union’s notices of intent failed to comply with California’s Automobile Sales Finance Act, and therefore Safe 1 is not entitled to the deficiency balance that remains after the vehicle’s subsequent sale.

The credit union denies all claims made in the class action lawsuit but has agreed to the settlement. The Court has not ruled in favor of either party.

Safe 1 Credit Union is a member-owned not-for-profit financial institution serving residents of Kern, Kings, Fresno, and Tulare counties in California.

Class Members who paid any amount toward a deficiency balance after their vehicle was repossessed will receive a check for 100 percent of the amount they actually paid Safe 1 or its assignees toward that deficiency balance.

According to the settlement agreement, approximately 612 accounts, consisting of 738 are Class Members; their outstanding deficiency balances total approximately $4,829,867.41.

Also as part of the settlement, Safe 1 will waive any remaining deficiency balance from each Class Member’s account and stop all collection efforts on those balances, and will request that Equifax, Experian, and TransUnion delete the trade line that references the Class Member’s account.

Individuals who believe they should be part of the Class but are not included on the Class list may submit documentation that supporting their contention that they belong in the Class, such as the conditional sales contract assigned to Safe 1 that supports that the individual purchased a vehicle in California, documentation that indicates repossession or voluntarily surrender to Safe 1, an NOI issued by Safe 1 at any point from June 25, 2016, to June 25, 2020, or any other documentation that indicates they could be part of the Class.

The final approval hearing in the Safe 1 Credit Union settlement is set for Sept. 15, 2021.

The deadline to opt out of or object to the settlement is June 23, 2021.

Class Members are not required to file a claim in order to benefit from this settlement.

Who’s Eligible

A person is considered a Class Member if they are a California resident who purchased a motor vehicle in California pursuant to a conditional sales contract that was subsequently assigned to Safe 1 Credit Union, whose motor vehicle was repossessed or voluntarily surrendered to Safe 1 Credit Union, who was issued an notice of intent (NOI) by Safe 1 Credit Union any time between June 25, 2016, and June 25, 2020, and against whose account a deficiency balance existed following the disposition of the vehicle.

Potential Award

Varies.

Class Members who paid any amount toward a deficiency balance after their vehicle was repossessed will receive a check for 100 percent of the amount they actually paid Safe 1 or its assignees toward that deficiency balance.

Proof of Purchase

No proof of purchase is required.

Claim Form

No claim form is required.

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

No claim form is required.

Case Name

Marrero, et al. v. Safe 1 Credit Union, Case No. 56-2018-00520827-CU-BT-VTA in the Superior Court of Kern County, California

Final Hearing

09/15/2021

Settlement Website

CreditUnionSettlement.com

Claims Administrator

Safe 1 Credit Union Settlement Administrator
P.O. Box 43208
Providence, RI 02940-3208
info@CreditUnionSettlement.com
1-866-723-8977

Class Counsel

Adam McNeile
Kristin Kemnitzer
KEMNITZER, BARRON & KRIEG LLP

Defense Counsel

Peter J. Van Zandt
LEWIS BRISBOIS BISGAARD & SMITH