Nicholas Financial debt collection $750K class action settlement

Nicholas Financial agreed to pay $750,000 to resolve claims it violated debt-collection laws when collecting on loans and repossessing collateral. 

The settlement benefits individuals who received a presale notice or post-sale explanation from Nicholas Financial Inc. between April 1, 2015, and Dec. 1, 2022, except those against whom Nicholas Financial obtained a final deficiency notice, those who filed for bankruptcy after the collateral sale date whose bankruptcy ended in discharge instead of dismissal and those whose loans Nicholas Financial sold before Feb. 21, 2024. 

Plaintiffs in the class action lawsuit claim Nicholas Financial violated Missouri consumer protection laws by failing to provide sufficient presale notice and post-sale explanations to consumers whose collateral was repossessed. According to the class action lawsuit, Nicholas Financial also violated Missouri law when attempting to collect on debts.

Nicholas Financial Inc. is an automotive lender that partners with dealerships nationwide.

Nicholas Financial hasn’t admitted wrongdoing but agreed to a $750,000 settlement to resolve the debt-collection class action lawsuit.

Under the settlement terms, class members can receive a payment if Nicholas Financial repossessed and sold their vehicles. No payment estimates are available at this time.

The settlement also includes other benefits. Nicholas Financial agreed to write off $86.1 million in deficiency balances owed by class members. The company will also do its best to delete any deficiency balance information from consumer credit reports with the four nationwide consumer reporting agencies (Equifax, Experian, Innovis and TransUnion).

The deadline for exclusion and objection is May 1, 2024.

The final approval hearing for the settlement is scheduled for May 15, 2024.

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

Who’s Eligible

Individuals who received a presale notice or post-sale explanation from Nicholas Financial Inc. between April 1, 2015, and Dec. 1, 2022, except those against whom Nicholas Financial obtained a final deficiency notice, those who filed for bankruptcy after the collateral sale date whose bankruptcy ended in discharge instead of dismissal and those whose loans Nicholas Financial sold before Feb. 21, 2024. 

Potential Award

TBD

Proof of Purchase

N/A

Exclusion Deadline

05/01/2024

Case Name

Nicholas Financial Inc. v. Jeremiah T. Gross, Case No. Case No. 21CY-CV02148-02, in the Circuit Court of Clay County, Missouri

Final Hearing

05/15/2024

Settlement Website

NFIClassAction.com

Claims Administrator

NFI v Gross
c/o Settlement Administrator
PO Box 23369
Jacksonville, FL 32241
314-227-7659

Class Counsel

Martin L Daesch
Jesse Rochman
Craig W Richards
ONDERLAW LLC

Defense Counsel

Amy T Ryan
Jonathan R Shulan
Daniel R O’Brien
ARMSTRONG TEASDALE LLP