Mass. First Resolution Investment Debt Collection Class Action Settlement

Massachusetts debtors can now get benefits from a $1.5 million class action settlement with First Resolution Investment Corporation.

The settlement offers benefits for Massachusetts residents who were subject to debt collection efforts by debt collector First Resolution. Some benefits require the Class Member to file a claim, and others will be distributed automatically.

Plaintiff Debra Clark alleges defendant and debt collector First Resolution Investment Corporation engaged in debt collection practices that violated various provisions of Massachusetts debt collection law.

According to Clark, First Resolution tried to collect debts from Massachusetts debtors without first getting licensed as a debt collector by the Massachusetts Division of Banks. She also alleges First Resolution failed to register as a foreign corporation with the Massachusetts Secretary of State before conducting business in Massachusetts.

First Resolution has agreed to the settlement, but it still denies Clark’s allegations. The settlement does not require First Resolution to admit any fault.

The settlement requires First Resolution to put up a settlement fund worth $1.5 million. This fund will be used to pay benefits to Class Members after first being used to cover court costs, class counsel’s attorney fees, and a service award for Clark.

Class Members must submit a claim to get a 10 percent reduction in their remaining debt owed to First Resolution. Other benefits, including payments and interest waivers, do not require submission of a claim.

Class Members can object to the settlement by submitting a written request by April 10, 2018.

Who’s Eligible

The settlement Class covers Massachusetts residents who were subject to any attempt by First Resolution to collect a defaulted consumer debt from April 8, 2011 through Jan. 10, 2018.

Qualifying collection efforts might include:

• Filing or prosecuting a lawsuit
• Wage garnishment or summary process action
• Recording or levying an execution
• Sending a bill, demand letter, notice, or similar document
• Placing a debt collection phone call
• Filing a proof of claim in a bankruptcy lawsuit
• Reporting the Class Member to a consumer reporting agency
• Accepting payment for the debt at issue

Debt collection actions taken by other persons or businesses on behalf of First Resolution also qualify.

Potential Award

Varies.

Class Members who made payments to First Resolution will receive a partial refund of the amount they paid.

• Class Members with “open accounts” – accounts for which collection efforts were being made or could have lawfully been made as of Sept. 26, 2017 – will receive about 10 percent of the amount they paid to First Resolution, or a minimum of $2.50. Open accounts will no longer accrue interest.
• Class Members with “closed accounts” – any account that is not an “open account” – will receive about 20 percent of the amount they paid to First Resolution, or a minimum of $5.

For Class Members against whom First Resolution has already obtained a court judgment, First Resolution will forgive all unpaid post-judgment interest. These Class Members can get a 10 percent credit against the remaining judgment if they submit a valid and timely claim.

Accounts not subject to a judgment will qualify for forgiveness of all unpaid post charge-off interest. These Class Members can get a 10 percent credit against their remaining balance if they submit a valid and timely claim.

Class Members must file a valid and timely claim to get the 10 percent credit against their existing balances. Filing a claim is not necessary to get an interest waiver or a payment.

Proof of Purchase

No proof of purchase or other documentation is required, other than the information requested in the Claim Form.

Claim Form

A link to the online Claim Form is available on the settlement website home page.

CLICK HERE TO FILE A CLAIM »

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

4/10/2018

Case Name

Clark v. First Resolution Investment Corp., et al., Case No. 15-1013-BLS2, in the Superior Court for Suffolk County, Massachusetts

Final Hearing

5/23/2018

Settlement Website

www.FirstResolutionSettlement.com

Claims Administrator

First Class, Inc./ J13713- Clark
5410 W. Roosevelt Rd., Suite 222
Chicago, IL 60644-1490

Class Members who want to contact the settlement administrator are encouraged to use the inquiry form on the settlement website.

Class Counsel

Kenneth D. Quat
QUAT LAW OFFICES
866-907-1220

Josef C. Culik
CULIK LAW PC
617-830-1795

Defense Counsel

Alan H. Abes
Elizabeth M. Shaffer
DINSMORE & SHOHL LLP

Terry Klein
Laura Greenberg-Chao
HENSHON KLEIN LLP