Sarah Mirando  |  October 16, 2012

Category: Consumer News

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Corrective SolutionsNearly 800,000 California and Pennsylvania residents may be eligible to participate in a class action lawsuit settlement involving two debt-collection companies that allegedly forced consumers into paying for “Financial Accountability” classes as part of a Bad Check Restitution Program. If approved, Class Members will receive $75 cash from the $3 million class action settlement.

Plaintiffs in the class action lawsuit accuse American Corrective Counseling Services (ACCS) and National Corrective Group (NCG), which operates as Corrective Solutions, of violating various laws by making false and misleading statements and seeking and collecting fees unauthorized by law when carrying out bad check diversion programs in the names of district attorneys.

According to the Corrective Solutions class action lawsuit, ACCS and NCG would mail notices, printed on local DA’s letterhead stationery, ordering consumers who wrote checks with insufficient funds to pay hundreds of dollars to attend a “Financial Accountability” class. Consumers who didn’t pay the fee and attend the class were threatened with criminal prosecution.

American Corrective Counseling Services and National Corrective Group deny the allegations but have agreed to a $3 million class action lawsuit settlement to resolve the litigation.

Class Members of the ACCS, NCG class action lawsuit settlement include anyone who received a District Attorney Bad Check Restitution Program Notice in California between January 4, 2006 and August 31, 2011 or in Pennsylvania between January 25, 2004 and August 31, 2011, which was printed on letterhead stationary from one of the District Attorneys listed on the Settlement Website: www.SmithSettlement.com.

Class Members that submit a valid Claim Form no later than February 14, 2013 will receive $75 cash from the class action lawsuit settlement. This amount may be higher or lower, depending on how many people file valid Claims.

Claim Forms and more information on your rights in the Corrective Solutions District Attorney Bad Check Restitution Program Class Action Settlement can be found at www.SmithSettlement.com.

The case is Smith v. National Corrective Group, Inc., Case No. 10-cv-0010 JSW, U.S. District Court, Northern District of California.

UPDATE 12/24/13: The class action settlement was rejected in December 2012 for being “problematic.” The Settlement website has been taken down, so no updates are available.

UPDATE 6/20/14:An amended class action settlement agreement was entered in August 2013, was granted final approval on May 5, 2014, and became effective May 6, 2014. Payments are expected to be mailed to Class Members in late July 2014, according to the Settlement Administrator. Settlement Class Members who received notice of the DA Bad Check Restitution Program Class Action Settlement will automatically receive payment. Those who did not receive a notice had to submit a claim by April 1, 2014 to participate. If you receive a check, let us know!

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200 thoughts onDA Bad Check Restitution Program Class Action Settlement

  1. christina rivas says:

    court was on feb 7th rite so wat was the outcome? wen can i recieve my $

  2. addie pratt says:

    I was wondering how much money will I recive and when can I expect it

  3. Pearl says:

    i sent my claim in and havent heard anything as of yet what can i expect from this case

  4. David Granby says:

    Phone number for class action law suit no longer in service. How can find out the status of this claim?

  5. David Granby says:

    When will I receive my check for $75. I can’t obtain any information regarding this class action law suit. The telephone number on the claim is no longer in service.

  6. Pdjones says:

    Hi, I recently was going thru personal problems and forgot to send in the post card. Can I still send it in or can I call. Thanks

  7. Renee Roman says:

    When will I get my check?

  8. John J. says:

    I want to know what is going on with this settlement. I spent the postage to mail in a claim form, and I am wondering when the $75 is coming.

  9. Regan fox says:

    I turned I’m a claim form and was curious to know when to expect a check?

    1. Myrna Jones says:

      I turned in claim form and would like to know when and if mi will receive money, Also how much.

    2. Arod says:

      For all those who are reading this I just received a check from SmithSettlement regarding this Bad Restitution Lawsuit filed by them….in the amount of $6.50 yes SIX DOLLARS AND FIFTY CENTS.

      I am so furious and upset made me wait months, I was one of the first ones who received a notice than later I read ohh $75 dollars is what were going to get. I paid close to $500 and in the end I get a check for $6.50.
      Honestly I believe this firm kept most of the money and ripped me off at least. What a joke. There’s not even a live person you can speak with it’s like hit and run.

      1. Rivermom says:

        I so agree and was furious to receive my check in post card form yesterday in the amount of $2.04!!!!! Appears someone of someones received a substantial amount. Personally this was a slap in the face for all of us who gave them $75!! I feel like framing it to remind me to say “NO” next time!!!

      2. Kandy says:

        The 75$ is what you get when you turn in a claim form but after the money is divided(the settlement) you will receive your payment of that in late July or a little after…You guys should have looked more into it and cared and you’d know what’s going on. (If you truly deserve it)

        1. Arod says:

          No you’re incorrect my friend, I received the notice “post card” in September of last year2013 and since I was one of those who received it, I did not have to fill out or submit the claim form, I should have received the $75.00 dollars and not six dollars. Looks like we got ripped off and this firm smithsettlement kept most of the 3.5 million. Plain and simple.

      3. Tanya says:

        Mine was only $2.04 :(

      4. Day says:

        hey I got 2 checks. One for 6.53 and one for 2.04. LOL! Oh well. I had already forgot about the money I paid and this settlement, so I just look at this as a gift.

      5. dabne says:

        I rec’d one last week or so for $6.53 and I never recall ANYTHING about this suit….so I guess I shouldn’t complain about these lil crumbs…they can pay for any other lil silly fees my bank likes to charge now n then…lol!

    3. mrs says:

      Hey, does this mean there really never was a warrant?

    4. Richard Young says:

      I receive a letter are card from a settlement called Smith’s settlement. My address has changed 41304 159st Lancaster CA. 93535. My name is Richard Young 11/10/1973 date of birth old address 37929 35th.street e. Apt #508 Palmdale CA. 93550. Ive never received a check.

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