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. Jamie says:

    Has anyone got there check

    1. jeffrey says:

      Not here in Oakland, CA

  2. Latun says:

    no one has gotten a check yet

  3. Sasha says:

    Cherres did you get your check already ?

    1. Hope says:

      ya i got my big $10, what a joke

  4. cherrees says:

    I feel its very wrong that we only get $75 our class is only 160,000 people strong well that’s what I read on the website ..they said it could have been up to 800,000.smh I can’t believe after all the anxiety And stress they put me through that’s all I get very disappointed

    1. carnell tutwiler says:

      I thought we all were going to get $ 2,222.00. Not $75.00. Is the checks still going out in late July ? If so, do you know about what date?

      1. Patty says:

        That’s what I thought too. I haven’t received anything. $75 really doesn’t compare to the harrassment that we all went through.

    2. Angela says:

      I still have not received anything and I got a card in the mail. At this time the card said that the parties have agreed to settle the dispute for 3,250,000. which will be used to pay for settlement costs and settlement payments to class members and one or more charitable organizations. It is estimated that the number of class members may be as high as 450,000. I am still trying to find some contact information through one of their current class action suits, but so far no luck. I know I should give up but it just irks me and I am also curious as to which charitable organizations received funds and the amounts. I believe this is where the additional monies left over from those who did not cash checks or follow through with their claims went.

  5. Top Class Actions says:

    UPDATE: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!

    1. Jessica says:

      I received a check for $2.04. I live in PA n ow, and have lived here during the entire period mentioned. I received those papers threatening fines and having to attend classes but the catch was that I had never written a bad check in my life. I honestly had no idea there was a class action suit, though I did make a number of complaints since I was being threatened for no good reason and as a result, I never sent any money or attended any classes. I was surprised that I got a check in the mail even if it was only for $2 and research brought me here… I must say thought that I’m happy that the settlement terms were changed so that those who had no idea it existed could get justice too. I would have been happy without any money as long as the jerks who use fraud to ruin peoples’ lives are dealt with in the harshest manner possible.

    2. Day says:

      Got 2. 1 for 6.53 and 1 for 2.04

      1. dabne says:

        ooh….should I expext another then…for a penace of $2.04 to add to my wealth of $6.54?

  6. kim says:

    The recording is now saying that the checks will be mailed late july. :(

  7. Lex says:

    Has anyone gotten a check ?

  8. kim says:

    I too was wondering about when the checks were coming. I called today and it said they were mailed out this month. I hope it’s more than $75 but anything is better than nothing.

  9. Cesst says:

    They already send the checks

  10. margaret white says:

    In the web site the said payments will be issued in june 2014 that was in may. Since then the 800 number is just a recording. And the website page is down. Theres nobody to contact anymore. Im starting to think something’s not right. Can someone updated me. Has anyone seen any money yet.

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