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You are a Settlement Class Member if all of the following apply to you:
Excluded are any persons against whom a final court judgment with respect to a deficiency balance was entered prior to December 2, 2019, who have filed for bankruptcy without a dismissal of the bankruptcy case, or who are deceased.
There are approximately 8,500 accounts belonging to Settlement Class Members, with deficiency balances assessed in those accounts totaling approximately $98,033,433.44.
If the settlement is approved by the Court, all Settlement Class Members will receive the benefits described below. If the settlement is not approved by the Court, Settlement Class Members will not get any benefits of the settlement and the parties will go back to Court for a trial on the merits of the Action. The parties have made their best efforts to negotiate a settlement that is fair and reasonable under the circumstances.
Settlement Class Benefits. For all Settlement Class Members, ACA agrees, to the extent it has not done so already, to waive and not to pursue collection of any deficiency balances remaining after the sale of the repossessed or surrendered vehicles which are the subject of the Action. This means ACA will not take any steps to collect any money on your account. ACA will also request that the Credit Reporting Agencies delete the trade lines referencing Settlement Class members’ accounts. ACA will request that all references to such accounts, including any deficiency balances owing to ACA after the sale of the vehicles for those accounts, be deleted, and ACA will make no future reports concerning the deficiency balances allegedly owed by Settlement Class Members.
No Requirement to Do Anything to Get Benefits. You do not need to do anything, or call or write anyone, to receive the benefits of the settlement. You are going to automatically receive those benefits, as long as the Court approves the settlement. However, if you have questions, or want to update your contact information, you may contact Kroll Business Services, the Settlement Administrator of the class action settlement, toll free at 1-833-910-3609 or through the contact section of this website.
Important Tax Notice. ACA has agreed that it will not issue an IRS Form 1099-C to any Settlement Class member in connection with the deficiency waiver unless it is ordered by the IRS to do so. Still, any benefits received under the settlement may or may not be the subject of state or federal taxation, depending on your circumstances. Class Counsel are not tax attorneys, accountants or advisors and you are advised to seek separate advice on matters on taxation.
Attorney’s Fees and Award to Class Representative. Class Counsel will seek attorney’s fees and costs of $225,000, subject to approval by the Court at the final approval hearing. Any fees and costs sought by Class Counsel and approved by the Court will be separately paid by ACA and will not diminish your benefits under the settlement. In addition, the Class Representatives will request an award of $10,000 each, for their services to the Settlement Class, to be approved by the Court at the final approval hearing. Any service award(s) to the Class Representative will be separately paid by ACA and will not diminish your benefits under the settlement.
In exchange for the benefits described on this website, every Settlement Class Member gives ACA a release and agrees to be bound by all court orders in the Action, and every Settlement Class Member will be bound by the terms of the settlement once it is final. A release means you cannot sue or be part of any other lawsuit against ACA about the claims or issues in this Action ever again, including the NOIs and the collection and credit reporting on your Accounts.
Specifically, if the Court approves the proposed settlement, Plaintiffs, and each Settlement Class Member who does not request exclusion, and their respective heirs, executors, administrators, representatives, agents, attorneys, successors, predecessors-in-interest and assigns will be deemed to have fully released and forever discharged ACA and any of ACA’s present and former parents, subsidiaries, “d/b/a names” and fictitious business names, its/their officers, directors, attorneys, accountants, agents, representatives, employees, heirs, insurance carriers, predecessors, affiliates, agents, or debt buyers or successors in interest (provided the accounts are repurchased from the debt buyer or successor in interest) from any and all rights, duties, obligations, claims, actions, causes of action or liabilities, whether known or unknown, existing or having accrued as of the date of the Final Judgment that were asserted or could have been asserted in the Action and relate to or arise out of ACA’s written notice of intent to dispose of or sell a repossessed or surrendered motor vehicle to Settlement Class Members, ACA’s assessment of deficiency balances against Settlement Class Members’ accounts, ACA’s collection or attempted collection of deficiency balances from Settlement Class Members, and/or ACA’s reporting to the Consumer Reporting Agencies of Settlement Class Members’ accounts.
Upon Court approval of the settlement, a judgment will be entered fully and finally settling the Action as to all Settlement Class Members, except those who properly and timely request exclusion from the Action.
Objectors are not required to attend the Final Approval Hearing, but if you intend to appear or have your separate attorney appear, you must state in your written objection, “I intend to appear at the hearing.”
In order for the settlement to be implemented, the Court must finally approve the proposed settlement. The Court has set the “Final Approval Hearing” for July 28, 2022 at 9:15 a.m. PDT (subject to change by the Court without further notice), in Department 15 of the Los Angeles County Superior Court, located at 111 North Hill Street, Los Angeles, California 90012, to determine whether the proposed settlement should be approved as fair, reasonable and adequate; the amount of Plaintiff’s counsel’s reasonable attorney’s fees; the amount of the class representative’s incentive award; and whether the settlement should be finally approved. Class Counsel will apply to the Court for reasonable attorney’s fees and expenses in an amount up to $225,000, plus incentive awards of $10,000 to each of the named Plaintiffs and Class Representatives, Jay Sherrard and Dolly West, to be paid by ACA separately from the benefits to Settlement Class Members.
You do not need to hire a lawyer, but you may if you want to do so. You and the Settlement Class are already represented by Class Counsel, at no out-of-pocket cost to you.
The settlement will not take effect unless and until:
After the Court rules on the final approval and the time to appeal has expired or appeals are exhausted, the settlement will become final, and you will receive the class benefits. If the Court does not approve the settlement, Settlement Class Members will not receive any benefits described on this website. It will be as if no settlement was reached, and the parties will continue to litigate the Action.
If you have questions regarding the Action, this website or the settlement, you may contact the Settlement Administrator. If you have additional questions, you may contact Class Counsel, whose contact information is listed below. The records and other papers in the Action are on file with the Court and available to be inspected during regular business hours, Monday through Friday, at the Clerk’s Office. The Clerk of the Court is located at: Superior Court of California, County of Los Angeles, 111 North Hill Street, Los Angeles, California 90012.
Further information about the Settlement can be obtained by contacting the Settlement Administrator by phone toll free 1-833-910-3609 or through the contact section of this website.
PLEASE DO NOT CONTACT THE JUDGE REGARDING THE ACTION.
Sherrard v. American Credit Acceptance
c/o Kroll Settlement Administration LLC
P.O. Box 225391
New York, NY 10150-5391
Brandon A. Block, Esq.
Law Offices of Brandon A. Block, APC
9440 Santa Monica Blvd., Ste. 301
Beverly Hills, CA 90210
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Alexander B. Trueblood, Esq.
Trueblood Law Firm, APC
10940 Wilshire Blvd., Ste. 1600
Los Angeles, CA 90024
Counsel for ACA:
Scott J. Hymen, Esq.
Severson & Werson, APC
19100 Von Karman Ave., Ste. 700Irvine, CA 92612