San Diego Court Approves CitiFinancial Auto Class Action Settlement
Judge Barton of the San Diego County Superior Court finally approved a class action settlement against CitiFinancial Auto and its predecessor, Arcadia Financial, last Friday, January 2, 2009. This is great news for settlement class members, those whose vehicles were repossessed and who received CitiFinancial Auto's post-repossession Notice between November 1, 2002 and September 25, 2007, and against whom CitiFinancial Auto asserted the right to a deficiency or who paid money after their vehicles were repossessed and were unable to get their vehicles back.
Most of the settlement class members did not pay anything after their vehicles were repossessed. But CitiFinancial's claim to a deficiency has been on their credit reports, lowering their credit score. In addition, they may have been pursued by collectors for that money. The settlement means that CitiFinancial Auto will clear their credit reports of its tradeline. It will also reduce the amount owed to zero. The settlement means that CitiFinancial "gives up" its right to collect about $43 million in deficiencies!
More than 900 settlement class members paid money to CitiFinancial Auto after their vehicles were repossessed. In addition to having their credit reports cleared, those folks will be refunded that money, plus interest at 7% per year, from the date of the payment until June 30, 2008. CitiFinancial Auto will fund a $3.2 million settlement fund to pay these class members.
When will all this happen? CitiFinancial Auto must clear credit reports and zero out the amount class members owe by March 23, 2009. Class members should check their credit reports after that to be sure those reports no longer include any obligation to CitiFinancial Auto.
Class members who made post-repossession payments are to receive their refunds within 30 days of April 2, 2009.
