Court Approves $68 Million Settlement Of Class Action Against Nissan Acceptance
25 August 2000
SAN FRANCISCO - San Francisco Superior Court Judge David Garcia granted approval Thursday to a $68 million settlement of a consumer class action brought on behalf of 16,000 customers against Nissan Motor Acceptance Corporation.
The plaintiff, Yvonne Moultrie, purchased an automobile financed by NMAC. After she allegedly fell behind in her payments, NMAC repossessed and sold her vehicle in January 1998. NMAC then claimed that Moultrie was liable for the loan balance and other charges remaining after the sale of the vehicle.
On May 19, 2000 Moultrie filed a class action against NMAC on behalf of herself and others similarly situated claiming that NMAC was not entitled to collect any of the amounts it was seeking because it had failed to provide her with the notice required by law prior to disposing of the vehicle. She claimed that the notice sent by NMAC omitted information on the location of the vehicle and the extent of her potential liability that should have been included.
Under the terms of the settlement approved by Judge Garcia, NMAC has agreed to refund all of the amounts collected from class members whose vehicles were repossessed and who were sent the allegedly defective notice. NMAC will also forego collection of any further amounts and take steps to clear the credit histories of borrowers. In addition, NMAC has agreed to the terms of an injunction that will regulate its conduct over the next seven years and require it to comply with the applicable requirements for issuing notices to borrowers.
Lead counsel for the class, Mark A. Chavez, of Chavez & Gertler LLP in Mill Valley, Calif., described the "100 cents on the dollar settlement" as "an extraordinary result" for class members. "It is difficult to ever obtain full monetary relief in settlement of any lawsuit and virtually unheard of to be able to do so in a class action," stated Chavez. According to Chavez, "the settlement constitutes an unqualified victory, not some nebulous compromise."
Williard P. Ogburn, the Executive Director of the National Consumer Law Center in Boston, Mass., agreed. He hailed the settlement as "one of the very best recoveries for plaintiffs in a multi-million dollar consumer class action".
Chavez, whose firm is currently prosecuting similar class actions against Chrysler Financial, Ford Motor Credit Company GMAC, and other finance companies, commended NMAC for settling without a trial and for providing full relief to class members. "Unlike the other major finance companies, NMAC was willing to recognize that it had made a mistake and to fully rectify it."
