$7M Hughes Federal Credit Union repossession notification class action settlement

Hughes Federal Credit Union (HFCU) has agreed to a $7 million class action settlement to resolve claims it violated Arizona law by failing to provide proper notices to vehicle repossession borrowers.

The Hughes Federal Credit Union settlement benefits individuals who financed the purchase of a motor vehicle through Hughes Federal Credit Union, whose vehicle was repossessed by HFCU and who had an Arizona address at the time of repossession between May 18, 2019, and Aug. 4, 2023.

Plaintiffs in the repossession class action lawsuit claim HFCU failed to provide proper repossession notification letters to Arizona borrowers after repossessing their vehicles. These notices are required by Arizona law to properly inform borrowers of their rights.

Hughes Federal Credit Union is a financial institution in Arizona that offers loans, credit cards, mortgages and other financial products.

HFCU has not admitted any wrongdoing but agreed to a $7 million class action settlement to resolve the repossession allegations.

Under the terms of the Hughes Federal Credit Union settlement, class members can receive a cash payment based on the amount they financed and the finance charges associated with their secured obligation. According to the settlement website, these payments will be around 14.69% of full statutory damages, with each class member receiving an average payment of $1,067.

However, exact payments may be higher or lower depending on each class member’s individual circumstances.

Any funds remaining after the first round of payments will be used to fund a second distribution of checks. If any funds remain after the second distribution, the money will be donated to a charity approved by the court.

The settlement also resolves any deficiency balances claimed by class members. HFCU allegedly has around $25.6 million in disputed deficiency balances, which will be resolved with the settlement. Class members who opt out of the settlement will not have their deficiency balances resolved.

The settlement also provides non-monetary benefits in the form of credit reporting relief. HFCU will request that credit reporting agencies delete the trade line for the motor vehicle secured obligations and deficiencies from class members’ credit files within 60 days of the settlement’s effective date.

The deadline for exclusion and objection is Nov. 20, 2026.

The final approval hearing for the repossession notification class action settlement is scheduled for Dec. 7, 2026.

No claim form is required to benefit from the settlement. Class members who do not exclude themselves will automatically receive settlement benefits.

Who’s Eligible

The Hughes Federal Credit Union class action settlement benefits individuals who financed the purchase of a motor vehicle through Hughes Federal Credit Union, whose vehicle was repossessed by HFCU and who had an Arizona address at the time of repossession between May 18, 2019, and Aug. 4, 2023.

Potential Award

Varies

Proof of Purchase

N/A

Claim Form Deadline

11/20/2026

Case Name

Harrison, et al. v. Hughes Federal Credit Union, Case No. C20232230, in the Arizona Superior Court for Pima County

Final Hearing

12/07/2026

Settlement Website

HarrisonRepoSettlement.com

Claims Administrator

Harrison v HFCU
c/o Settlement Administrator
P.O. Box 23648
Jacksonville, FL 32241
[email protected]
866-473-1092

Class Counsel

Cary L. Flitter
Andrew M. Milz
Jody T. Lopez-Jacobs
Edward Flitter
FLITTER MILZ P.C.

Mark Rubin
RUBIN & BERNSTEIN PLLC

Defense Counsel

James R. Branit
Bradley E. Faber
Natasha Singh
John L. Condrey
GORDON REES SCULLY MANSUKHANI LLP