Saba Rael et. al v. Red Rocks Credit Union
Case No. 2020CV32226
NOTICE OF PROPOSED CLASS ACTION SETTLEMENT
FINAL APPROVAL OF THE SETTLEMENT WAS GRANTED ON SEPTEMBER 8, 2022.
IF YOU RECEIVED A POST-CARD NOTICE ABOUT THIS SETTLEMENT, YOU HAVE BEEN IDENTIFIED AS A CLASS MEMBER
- A proposed Settlement has been reached in a class action lawsuit that may affect your rights.
- The Settlement resolves a class action lawsuit against Red Rocks Credit Union (“RRCU”). The lawsuit alleges that RRCU failed to provide customers with a partial refund of the fees paid for Guaranteed Asset Protection (“GAP”) after customers paid off their Finance Agreements early. Plaintiff contends that RRCU was required to automatically issue the refund after the early payoff under Colorado law. RRCU denies any wrongdoing.
- You are a member of the Class if (1) you entered into a Finance Agreement with GAP protection that was governed by Colorado law and that was made with or assigned to RRCU; (2) you paid off your Finance Agreement before the maturity date (an “Early Payoff”); (3) the Early Payoff occurred during the period October 1, 2014 to July 1, 2020; and (4) you did not receive a GAP Refund. Excluded from the Class are any persons whose vehicles were repossessed by RRCU due to the failure to pay the money owed to RRCU under the Finance Agreement.
- You do not need to do anything to receive money under this Settlement. After the filing of the lawsuit, RRCU paid you the full amount of your GAP refund, which you either received in the mail or was deposited into your account with RRCU. In total, the Class received approximately $312,267.84 in GAP refunds.
- RRCU has also agreed to deposit $81,254.26 into a Settlement Fund to pay for: (a) the cost of providing notice and administration of this Settlement (estimated to be approximately $9,000.00), (b) a Service Award of $500.00 to Plaintiff Saba Rael for serving as the Class Representative; and (c) an Award of Attorneys’ Fees and Costs in the amount of $71,754.26 to reimburse Class Counsel for the time and expense incurred representing the Class, subject to final approval by the Court.
- In addition, RRCU has also agreed to continue a Business Practice Change it made after the filing of the lawsuit that provides that from July 1, 2020 forward, RRCU will ensure that GAP refunds are paid to customers within a reasonable time after an Early Payoff of the Finance Agreement.
- You must decide whether to: (1) “Opt-Out” or (2) Object; or (3) Do Nothing