Mccalvin v. Condor Holdco Securitization Trust,

Case Number 17-cv-1350 (U.S. District Court, Eastern District of Pennsylvania)

NOTICE OF PROPOSED CLASS ACTION SETTLEMENT

You may be entitled to receive cash and cancellation of any Deficiency Balance in connection with a class action against
Condor Holdco Securitization Trust, Condor Assetco Securitization Trust, and Condor Recovery Securitization Trust.

 

A Federal Court has authorized this notice.
This is not a solicitation from a lawyer.
You are not being sued.

Your Legal Rights and Options in this Settlement:
Do Nothing You will be paid a share of the net settlement proceeds which will consist of approximately $1,150 per loan in cash to you, and also have your debt to the Condor Trusts forgiven for the transactions at issue, and also have corrections made to your credit report. 
Exclude Yourself If you exclude yourself, you will get no payment, will not have your debt forgiven and will not have corrections made to your credit report. This is the only option that allows you to ever be part of any other lawsuit against the Trusts concerning repossession or financing of your vehicle.  Act by October 9, 2018.
Object Write to the Court about why you do not like the settlement and do not want it approved.  You need to act by October 9, 2018.
Go to a Hearing Unless you exclude yourself, you can ask to speak in Court about the fairness of the settlement on November 5, 2018.  You do not need to go to the hearing in order to get paid or be a part of this settlement.

 

  1. Why did I get this notice package?

    1. The Court approved this notice because you have a right to know about a proposed settlement of a class action lawsuit, and about all of your options, before the Court decides whether to approve the settlement. If the Court approves it and after appeals, if any, are resolved, the Settlement Administrator will make the payments the settlement allows. 

      The Court in charge of the case is the United States District Court for the Eastern District of Pennsylvania, and the case is known as Mccalvin v. Condor Holdco Securitization Trust, No. 17-cv-1350.  The people suing – Tara Mccalvin, Ghani Smith, Holli Wise, and James C. Deviese and Theresa Deviese – are called the Plaintiffs (or the “Class Representatives”), and the companies being sued—Condor Holdco Securitization Trust, Condor Assetco Securitization Trust, and Condor Recovery Securitization Trust—are called the Defendants, or the “Trusts.”

      This notice explains the lawsuit, the settlement, your legal rights, what benefits are available, who is eligible, and how to get them.

      The Trusts’ records reflect that you and/or a co-borrower on your car loan received one or more notices from the Trusts after your car was repossessed.  The Trusts’ use of these notices forms the basis for this lawsuit.

  2. What is this lawsuit about?

    1. The lawsuit claims that the Trusts violated the Uniform Commercial Code by failing to send borrowers proper notice of their rights after repossessing their cars.  Plaintiffs say the Trusts violated the Uniform Commercial Code because a) their notice did not state the specific method of disposition (whether a public or private auction); or b) their notice did not list the time and place of any public sale of the vehicle, if any, for such an auction; or c) their notice did not adequately describe the secured party; or d) the Trusts sent no notice at all.  The Trusts deny that their disclosures violated any law, and the Trusts say they satisfied all legal requirements.  The Trusts also say that many of the members of the Class owe the Trusts money for balances still allegedly due after the sale of their vehicles at auction.

  3. Why is this a class action?

    1. In a class action, one or more people called Class Representatives sue on behalf of all people who have similar claims.  All these people are “Class Members,” and grouped together are a “Class.”  One court resolves the issues for all Class Members, except for those who exclude themselves from the Class.  The Trusts have challenged whether this case should proceed as a class action but have agreed not to oppose certification of a class for settlement purposes only.

  4. Why is there a settlement?

    1. Plaintiffs believe the Class might have won more money than the settlement amount had the case proceeded, but substantial delays and risks would have occurred, including the risk of the suit not being certified as a class.  The Trusts believe that the claims in the case lack merit, and that the Plaintiffs may have recovered nothing if the case had proceeded.  Both sides, with the assistance of a retired federal judge serving as a mediator, agreed to a settlement.  That way, they avoid the cost of further litigation and appeal, and the people affected will get money and other settlement benefits much sooner.  The Class Representatives and the class attorneys think the settlement is best for all Class Members.

  5. How do I know that I am part of the settlement?

    1. If you received this Notice in the mail, the Trusts’ records reflect that you are part of the Class.  The Court has made a preliminary determination certifying the following group as a Class:

      All persons in the United States who (a) financed a vehicle primarily for consumer use, whose consumer loan contract or installment sales contract was assigned to the Trusts or one of them; (b) from whom the Trusts, or one of them or their designee, repossessed the financed vehicle, or ordered it repossessed; (c) who were sent a Notice of Our Plan to Sell Property from the Trusts or similar document which failed to: (1) state the method of disposition, viz., whether a public auction or private sale; or (2) list the time and place of any public sale of the vehicle; or, (3) describe the name and address of the secured party; or (4) state that the borrower has the right to an accounting; (d) or, who were sent no notice at all; (e) from November 23, 2015 through March 28, 2018.

  6. What does the settlement provide me?

      •  Cash Component:  The Trusts have agreed to create a Settlement Fund of $5,700,000.  Approved expenses and Class Counsel fees will be paid from that fund. You will receive an equal share of the total amount of Settlement Funds then available.  There are approximately 2,890 loan accounts and about 3,245 Class Members, including co-borrowers.  If fees and expenses are allowed as requested, it is expected that your cash payment will be approximately $1,150, unless there were co-borrowers on your loan, in which case you will receive a portion of this amount.
         
      • Credit Report Correction:  If the Trusts have credit-reported your loan or repossession, they will request that your credit report be updated to remove any “tradeline” – any reference to the auto loan.  Details about how and when this will be done, and limits on the Trusts’ obligation to correct, are spelled out in the Class Action Settlement Agreement.
         
      • Forgiveness of Deficiency Balance:  If you have been advised by the Trusts that you still owed money after the sale of your repossessed vehicle, that balance is called a “Deficiency Balance.”  Unless you elect otherwise, the Trusts will forgive and eliminate any Deficiency Balance on your vehicle loan.  The average Deficiency Balance claimed due is around $8,046.  Yours could be more or less than this amount.   NOTE: see Tax Implications in Section 8 below.  You can choose not to receive debt forgiveness by submitting the enclosed Election Not to Accept Deficiency Balance Debt Forgiveness Form.
         
      • Any money remaining from uncashed or undistributable checks will, subject to Court approval, be paid to non-profit consumer organizations.
  7. What is the debt forgiveness benefit?

    1. As part of the Settlement, the Trusts will forgive any outstanding debt related to your repossessed vehicle. 
       

      • Example: John owed $10,000 on his repossessed vehicle and the Trusts paid $400 in repossession/towing fees.  His vehicle sold for $6,000 at auction.   John’s Auto Loan Deficiency would be $4,400.  

        Calculation: $10,400 – $6,000 (amount from sale of vehicle) = $4,400 deficiency.

       

      If you do not want your debt forgiven, submit the attached Election Not to Accept Deficiency Balance Debt Forgiveness Form.  (See Section #10 below).  Otherwise, the Trusts will automatically forgive and eliminate your Auto Loan Deficiency. If you do not know if you have any deficiency, you can call Class Counsel at 1-888-668-1225.

  8. Tax Implications

    1. This settlement has potential tax implications for you.  The Settlement Administrator will issue IRS 1099 forms for cash payments.  

      If you accept the Deficiency Balance Forgiveness, the Trusts may issue to you and to the IRS a 1099C form for the amount of the Deficiency Balance forgiven. This could result in your having to declare income in that amount on your next tax return and pay taxes on all or some of that amount.  You should consult your tax advisor to help decide if accepting the Deficiency Forgiveness is right for you.

  9. Do I need to do anything to get a payment or the credit reporting benefit?

    1. No, you do not need to do anything further.  You will get a payment and the credit reporting benefit automatically, after Court approval of the Settlement.

  10. Do I need to do anything to have my outstanding debt eliminated?

    1. No.  Unless you submit an Election Not to Accept Deficiency Balance Debt Forgiveness Form, any outstanding debt related to the financing of your repossessed vehicle will be automatically eliminated (unless you reinstated the loan and got your car back after the repossession). If you do not want your outstanding debt to be forgiven, fill out the Election Form and mail it postmarked no later than October 9, 2018 to:

       

      Mccalvin v. Condor Trusts Settlement
      c/o Settlement Administrator
      P.O. Box 23369
      Jacksonville, FL 32241-3369

  11. When would I get my payment?

    1. The Court will hold a hearing on November 5, 2018 at 9:00 a.m. in Courtroom 9A, James A. Byrne U.S. Courthouse, 601 Market Street, Philadelphia, Pennsylvania to decide whether to approve the settlement.  You do not need to appear at the hearing to be a part of the settlement and to receive a payment if the Court approves the settlement.  If the Court approves the settlement, there may be an appeal of that decision.  It is always uncertain whether there will be an appeal and if so, when it will be resolved.  Please be patient.

  12. What am I giving up to get a payment or stay in the Class?

    1. Unless you exclude yourself, you will stay in the Class, and that means that you cannot sue, continue to sue, or be part of any other lawsuit against the Trusts for any claims of any kind, whether known or unknown, that were or could have been raised in the Litigation or that relate to your vehicle loan with the Condor Trusts or the repossession of your vehicle.  It also means that the Court’s orders will apply to you and legally bind you.  Unless you “opt out” or exclude yourself from this case, you will automatically be deemed to have agreed to a “Release of Claims” which describes exactly the legal claims that you give up if you remain in the Class.

  13. How do I exclude myself to get out of the settlement?

    1. To exclude yourself from the settlement, you must send a letter to the Settlement Administrator by mail (first-class postage pre-paid) saying that you, as well as anyone else who signed your loan contract, want to be excluded from the settlement in Mccalvin v. Condor Holdco Securitization Trust, No. 17-cv-1350.  Be sure to include your name, address, email (if available), telephone number, and signature.  Mail your exclusion request postmarked no later than October 9, 2018 to the address below:

      Settlement Administrator

      Mccalvin v. Condor Trusts Settlement
      ATTN: Exclusions
      P.O. Box 23369
      Jacksonville, FL 32241-3369

  14. If I don't exclude myself, can I sue the Trusts for the same thing later?

    1. No.  Unless you exclude yourself, you give up any right to sue the Trusts for the claims that this settlement resolves.  If you have a pending lawsuit, speak to your lawyer in that case immediately.  You must exclude yourself from the Class to continue your own lawsuit.   

  15. If I exclude myself, can I get money from this settlement?

    1. No.  If you exclude yourself, you will not receive any money from this lawsuit or settlement, nor will you receive a credit report deletion, nor will you receive a release of any Deficiency Balance.

  16. Do I have a lawyer in this case?

    1. The Court has appointed the law firm Flitter Milz, P.C. of Narberth, PA; the law firm Klafter Olsen & Lesser LLP of Rye Brook, NY; the Murphy Law Firm of Ft. Lauderdale, FL; and The Indiana Consumer Law Group of Fishers, IN to represent you and other Class Members.  These lawyers are called Class Counsel.  You will not be charged individually for these lawyers.  If you want to be represented by your own lawyer, you may hire one at your own expense.

  17. How will the lawyers be paid?

    1. Class Counsel will ask the Court to approve a payment out of the settlement fund in an amount not to exceed $2,280,000 for fees and up to $32,500 for reimbursement of litigation expenses.  The fees would pay Class Counsel for the time they spent investigating the facts, filing the case, litigating the case, negotiating the settlement, filing legal papers with the Court, and overseeing future implementation of the settlement, including fielding inquiries from Class Members.  Class Counsel has not been paid for their time or services since this case was originally filed in early 2017.  The Court could award less than these amounts.  

  18. How do I tell the Court that I don't like the settlement?

    1. If you are a Class Member, you can object to the settlement if you do not like any part of it.  You should state why you think the Court should not approve the settlement.  The Court will consider your views.  To object, you must file an objection, or send a letter saying you object to the settlement in Mccalvin v. Condor Holdco Securitization Trust, No. 17-cv-1350.  Please be sure to include your name, address, email address (if available), telephone number, signature, and the reasons you object to the settlement.  Mail the objection to the three places listed below, postmarked no later than October 9, 2018, and file electronically or by mail with the Clerk’s Office, Room 2609, James A. Byrne U.S. Courthouse, 601 Market Street, Philadelphia, PA 19106.

      Settlement Administrator Class Co-Counsel Trusts' Counsel

      Mccalvin v. Condor Trusts Settlement
      ATTN: Objections
      P.O. Box 23369
      Jacksonville, FL 32241-3369

      Cary L. Flitter, Esq.
      Flitter Milz, P.C.
      450 N. Narberth Avenue
      Suite 101
      Narberth, PA  19072

      Eric S. Mattson, Esq.
      Sidley Austin LLP
      1 South Dearborn St.
      Chicago, IL 60603

       

  19. What's the difference between objecting and excluding?

    1. Objecting is telling the Court that you do not like something about the settlement, and that you, for that reason, want the settlement not to be approved.  You can object only if you stay in the Class.  Excluding yourself means you don’t want to be part of the Class.  If you exclude yourself, you cannot object because the case no longer affects you.

  20. When and Where will the court decide whether to approve the settlement?

    1. The Court is scheduled to hold a Fairness Hearing on November 5, 2018 at 9:00 A.M. in Courtroom 9A at James A. Byrne U.S. Courthouse, 601 Market Street, Philadelphia, PA.  At this hearing, the Court will consider whether the settlement is fair, reasonable, and adequate and whether it can proceed as a class action settlement.  If there are objections, the Court will consider them. The Court will listen to people who have asked to speak at the hearing.  The Court may also determine the Class Representative incentive awards and Class Counsel fees and litigation expenses.  Following the hearing, the Court will decide whether to approve the settlement.  We do not know how long these decisions will take.

  21. Do I have to come to the hearing?

    1. No.  Class Counsel will answer any questions the Court may have.  But you are welcome to come at your own expense.  If you file an objection, you don’t have to come to Court to talk about it, but you may.  As long as you properly mailed (or electronically filed) your written objection on time, the Court will consider it.  You may also pay your own lawyer to attend, if you wish.

  22. May I speak at the hearing?

    1. You may ask the Court for permission to speak at the Fairness Hearing.  To do so, you must send a letter stating that it is your “Notice of Intention to Appear in Mccalvin v. Condor Holdco Securitization Trust, No. 17-cv-1350.”  Your Notice of Intention to Appear must be filed or mailed so as to be postmarked no later than October 9, 2018 and be filed with or sent to the Clerk’s Office and the lawyers listed in Section 18 above.  You cannot speak at the hearing if you exclude yourself from the settlement.

  23. What happens if I do nothing at all?

    1. If you do nothing, you will be a part of this settlement (if the Court approves it) and will receive a settlement payment, forgiveness of your Deficiency Balance (if any), and credit reporting relief.  If you do not want your Deficiency Balance forgiven you must elect in writing by returning the enclosed form.  If you do not exclude yourself, you give up the right to bring your own lawsuit.

  24. Are there more details about the settlement?

    1. This notice summarizes the proposed settlement.  The pleadings and other records in this litigation, including a copy of the Settlement Agreement, may be examined at any time during regular office hours at the Office of the Clerk, James A. Byrne U.S. Courthouse, 601 Market Street, Philadelphia, PA. You can also read the Settlement Agreement by visiting the Important Documents part of this website.

      You may also call or write to the following:

      Mccalvin v Condor Trusts Settlement
      c/o Settlement Administrator
      P.O. Box 23369
      Jacksonville, FL 32241-3369
      1-888-755-4356

       

      Or

       

      Class Counsel
      Flitter Milz, P.C.
      450 N. Narberth Avenue, Suite 101
      Narberth, PA 19072
      1-888-668-1225

       

      Please do not call the Court, the Trusts, or the Trusts’ lawyers.