Jallo v. Resurgent Capital Services, L.P., 2016 WL 6610322 (E.D. Tex. Nov. 8, 2016)
The parties reached an agreement to settle this matter, which is pending in the U.S. District Court for the Eastern District of Texas. For more information, please visit http://www.resurgentfdcpasettlement.com/
From the Class Notice, which can be viewed in full on http://www.resurgentfdcpasettlement.com/:
IF RESURGENT CAPITAL SERVICES, L.P. ATTEMPTED TO COLLECT A DEBT FROM YOU, ON BEHALF OF LVNV FUNDING LLC, BETWEEN JULY 8, 2013 AND JULY 8, 2014, YOU MAY BENEFIT FROM THE SETTLEMENT OF THIS CLASS ACTION LAWSUIT.
This is a class action lawsuit about whether Resurgent Capital Services, L.P. (“Resurgent”) violated the Fair Debt Collection Practices Act, 15 U.S.C. § 1692, et seq. (“FDCPA”), and the Texas Debt Collection Act (“TDCA”), Tex. Fin. Code § 392.001 et seq., regarding debts of Texas consumers that HSBC charged off and subsequently sold to LVNV Funding, LLC (“LVNV”).
1. Why did I get this notice?
A Court authorized this notice to be sent to you because you have a right to know about a proposed settlement of this class action, and about all of your options, before the Court decides whether to give “final approval” to the settlement. If the Court approves the parties’ settlement agreement (“Settlement Agreement”), and after any appeals are resolved, payments will be made to everyone who qualifies. This notice explains the lawsuit, the settlement, your legal rights, what benefits are available, who may be eligible for them, and how to get them. The Honorable Judge Amos Mazzant of the United States District Court for the Eastern District of Texas is overseeing this class action.
2. What is this lawsuit about?
In the lawsuit, the Class Representative alleges that Resurgent violated the FDCPA and TDCA. You can read the Class Action Complaint at www.resurgentfdcpasettlement.com.
Resurgent and LVNV deny these allegations and maintain that they did not act wrongfully or unlawfully.
3. Why is there a settlement?
Both sides agree to settle to avoid the cost, risk, and delay of continued litigation. By settling, the parties avoid the cost and risk of a trial, and people who qualify will be compensated. The Class Representative and his attorneys think the settlement is best for all class members in this matter.
4. What is a class action and who is involved?
In a class action lawsuit, one or more people called “Class Representatives” sue on behalf of other people who have similar claims. In this case, the Class Representative is Bryan Jallo. The people together are a “class” or “class members.” The people who sue—and all the class members like him—are called “Plaintiffs.” The entities that the Class Representative sued—Resurgent and LVNV—are called “Defendants” in this case. One court resolves the issues for everyone in the class—except for those people who choose to exclude themselves from the class.
5. How do I know if I am part of the settlement?
Resurgent’s records indicate that you are a member of the class: (a) All persons for whom LVNV’s or Resurgent’s records show a Texas address, (b) from whom Resurgent, on behalf of LVNV, attempted to collect an alleged consumer debt that HSBC charged off and subsequently sold to LVNV as part of its portfolio labeled 13289, (c) during the period of time beginning on July 8, 2013 and ending on July 8, 2014.
Resurgent represents there are approximately 1,387 members.
6. What can I get from the settlement?
The final amount of the distribution to each class member is unknown but will be at least $23 per person ($31,962.40 / 1,387), and possibly more. The exact amount will be determined by the number of class members who do not exclude themselves from the settlement, and whether you also are entitled to any actual damages (the amount of any post-chargeoff interest that Resurgent may have collected from you on behalf of LVNV) that exceed any balance you currently have with LVNV. If actual damages—if any—to which you are entitled do not exceed any balance you currently have with LVNV, then you will receive a credit (the amount of any post-charge-off interest that Resurgent collected from you on behalf of LVNV) to your account. If the actual damages—if any—to which you are entitled exceed any balance you currently have with LVNV, you will receive the difference in the form of a payment on top of the pro rata share of the $31,962.40 to which you are entitled.
7. When will I get these benefits?
You will receive these benefits after the Court grants “final approval” of the settlement and any appeals are resolved. If the Court approves the settlement after a Settlement Approval Hearing on March 7, 2017, there may be appeals. It is always uncertain whether these appeals can be resolved, and resolving them can take time.
8. I want to be a part of the settlement and receive these benefits. What do I need to do?
Nothing. You will receive the benefits of the settlement if you do not exclude yourself from it.
9. What am I giving up to get a payment or stay in the class?
Unless you exclude yourself, you remain in the class, which means that you cannot individually sue Resurgent or LVNV over the claims settled in this case. If you stay in the class, you will agree to “release and discharge” Resurgent and LVNV as described in the Settlement Agreement. Importantly, this case only deals with claims under the FDCPA and the TDCA. To the extent you believe you have other claims against Resurgent or LVNV, they are unaffected by this lawsuit.
10. How do I get out of the settlement?
If you don’t want a payment from this settlement, but you want to keep the right to individually sue Resurgent or LVNV under the FDCPA or TDCA about the issues in this case, then you must take steps to exclude yourself from the settlement. To exclude yourself from the settlement, you must send a letter by mail saying that you want to be excluded from this matter. You must include the case name (Jallo v. Resurgent Capital Services, L.P. and LVNV Funding, LLC), case number (4:14-cv-00449), your full name, address, telephone number, email address (if available), and your signature. You must also include a clear statement that you wish to be excluded from the settlement class. You must mail your request for exclusion postmarked on or before January 6, 2017 to:
First Class, Inc./ J13361-Jallo 5410 W. Roosevelt Road, Ste 222 Chicago, IL 60644-1490
Submitting a timely and valid exclusion request in writing is the only way to voluntarily exclude yourself from the settlement. If you exclude yourself, you will not receive a payment from this settlement.
11. Do I have a lawyer in this case?
The Court appointed Greenwald Davidson Radbil PLLC to represent you and other class members as “Class Counsel.” You do not have to pay Class Counsel. If you want to be represented by your own lawyer, and have that lawyer appear in court for you in this case, you may hire one at your own expense.
12. How will the lawyers and Class Representative be paid?
Plaintiff’s lawyers will ask the Court for up to $150,000 in attorneys’ fees and for the reimbursement of up to $7,500 in litigation expenses, to be paid separate and apart from the settlement fund. The Court may award less than these amounts. In addition, the Class Representative will seek a total of $4,000 as an incentive for his service to the class. The attorneys’ fees and incentive award, subject to approval by the Court, will be paid separate and apart from amounts to the class members.
13. Is this a fair settlement?
The parties and their counsel believe that this settlement is fair and reasonable.