CSAC, INC. v SADE M. CRAWFORD

You or someone in your family may have had a consumer loan agreement directly with or that was assigned to CSAC for a loan used to purchase property repossessed by CSAC.

The Court sent you a short form notice by mail because you should know about a proposed settlement of a class action lawsuit in which you may be a class member, and about all your options, before the Court decides whether to approve the settlement. If the Court approves it, and after objections and appeals are resolved, CSAC will cancel debts and try to delete deficiency balance information from credit reports related to the repossessed property. Class members will also receive payments, as described more fully in this package.

The notice on this site explains in greater detail about the lawsuit, the settlement, your legal rights, what benefits are available, who is eligible for them, and how to get them.

The Court in charge is the Twenty Second Judicial Circuit Court for St. Louis City, Missouri, and the case is CSAC v. Sade Crawford, Case No. 1522-AC03346-02.

The lawsuit claimed CSAC violated statutory requirements for certain repossession notices sent by CSAC when attempting to collect Class Members’ loans and repossessing and selling their property. You can read the claims in more detail in the counterclaims of Sade M. Crawford (“Class Representative”) on this website.

In a class action, one or more people called Class Representatives sue for other people with similar claims. The class representative in this case is Sade M. Crawford. All individuals with similar claims to the Class Representative are “Class Members.” In class actions, one court and one lawsuit resolve the issues for all Class Members, except for those who exclude themselves from the Class. The Honorable Calea Stovall-Reid oversees this class action.

The parties disagree over who would have won and what the Class would’ve recovered if they had won. Class Representative believed she could recover 10% of the principal amount of their loan plus the interest charge and other relief. CSAC believed Class Representative and the Class were entitled to nothing (or may even owe CSAC money). To resolve the dispute, and because both parties are unsure of what would’ve happened in a trial, they agreed to a settlement. That way, they avoid the cost of a trial, and the people affected will get money and other benefits sooner. The Class Representative and the attorneys believe the settlement is fair and equitable for all Class Members.                                             

Judge Calea Stovall-Reid decided everyone who fits this description is a Class Member:

All persons to whom CSAC mailed a presale notice or post-sale notice. Excluded from the Class are all persons whom CSAC has obtained a final deficiency judgment or who filed for bankruptcy after the date on their presale notice and whose bankruptcy ended in discharge rather than dismissal.

You’re not a Class Member if CSAC has obtained a deficiency judgment against you and/or you filed for bankruptcy after the date on your presale notice and your bankruptcy ended in discharge rather than dismissal.

If you are still not sure whether you are included, you can ask for free help. You can call 1-877-312-9133 or continue to review the information on this site for more information.

CSAC has agreed to provide the Class with settlement benefits with an estimated value exceeding $9,575,000, which includes:

Money

CSAC has agreed to create a $1,575,000.00 fund to pay: (a) Class Members; (b) the attorneys’ fees and expenses for representing the Class; and (c) Sade M. Crawford for her services as Class Representative. This amount is called the “Cash Fund.” CSAC has also agreed to assign its claims and rights against companies that provided it insurance for the claims made in this lawsuit, except for Federal Mutual Insurance Company (“Federated”) and Auto Owners, Inc (“Auto Owners”). Class Members will receive the money remaining from any recovery from the insurers after attorney’s fees and costs are deducted.

Deficiency Write-Off

After the Effective Date (as defined in the Agreement) CSAC will no longer seek to collect any money it claimed you owed after it repossessed your property because of its claim you broke promises in your agreement with CSAC. These outstanding amounts are called “Deficiency Balances,” and CSAC has agreed to eliminate these Deficiency Balances and close the accounts connected with them. The value of this benefit to the Class and the Deficiency Balances being eliminated is estimated to be at least $$8,000,000. This amount is called the “Deficiency Write-Off.”

Credit Bureau Reporting

After the Effective Date, CSAC will try to delete deficiency balance information from your credit report with the nationwide consumer reporting companies—Equifax, Experian, and TransUnion—related to the Deficiency Balances and Judgment Write-Offs.

Class Members are strongly encouraged to consult with a tax professional about the tax effects of any money and other benefits (including the Deficiency Write-Off) received from this settlement. The attorneys in this case cannot provide you with any tax advice, and your receipt of benefits under this settlement might have tax consequences. However, CSAC has agreed not to issue an IRS Form 1099 to class members because the Parties believe this Settlement does not create a taxable event as defined by IRS regulations governing the discharge of indebtedness under the “contested liability” or “disputed debt” doctrine.

Every Class Member will receive the benefits of the Deficiency Write-Off, a cash payment, and the removal of deficiency balance information from your credit report with the nationwide consumer reporting companies—Equifax, Experian, and TransUnion—related to the Deficiency Balances and Judgment Write-Offs. More money might become available if Class Counsel pursues CSAC’s insurers (other than Federated and Auto Owners) and recovers from them.

The payment you receive depends on the money you borrowed and the interest rate on your loan.

By doing nothing, you will receive the benefits that come from the settlement, including money.

The Court will hold a hearing on May 23, 2023, at 11:00 AM. to decide whether to approve the settlement. Even if Judge Calea Stovall-Reid approves the settlement, there may be appeals. It’s always uncertain how an appeal will be resolved and how long it will take. Some appeals take more than a year. Please be patient. You’ll receive your payment if the settlement is approved and after that approval becomes a “final judgment” (i.e. after any appeals are resolved or the time for appealing has passed).

Unless you exclude yourself by following the procedure below, you are a part of the Settlement Class, and that means you can’t sue, continue to sue, or be part of any other lawsuit against CSAC about the legal issues.  For example, you won’t be able to make any independent claim against CSAC arising from the written notices (presale and post-sale repossession notices) this lawsuit is about. Staying in the Settlement Class also means all the Court’s orders in this lawsuit will apply to you and legally bind you. To see exactly the legal claims and defenses you give up if you get settlement benefits, please view the Settlement Agreement at www.CSACsettlement.com.

Excluding Yourself From the Settlement

If you don’t want benefits from this settlement, but you want to keep the right to sue or continue to sue CSAC on your own about the legal issues, then you must try to get out of the settlement. This is called “excluding” yourself—or is sometimes called “opting out” of the Settlement Class.

To exclude yourself from the settlement, you must send a letter by mail saying you want to be excluded from CSAC v. Sade Crawford, Case No. 1522-AC03346-02. Include your name, address, telephone number, last four digits of your Social Security Number, and the name of any other person on your agreement with CSAC, along with your signature. The exclusion request must be signed by you and by any co-borrower on your agreement, unless the co-borrower is deceased, in which case you must include a death certificate with your request. You cannot exclude yourself by having an actual or purported agent or attorney acting for you or a group of Class Members sign the letter. You must mail your exclusion request postmarked no later than May 20, 2023, to:

CSAC v Sade Crawford

c/o Settlement Administrator

P. O. Box 23369

Jacksonville, FL, 32241

If you ask to be excluded, you’ll get no settlement benefits, and you cannot object to the settlement. You won’t be legally bound by anything that happens. You may sue (or continue to sue) CSAC about the claims asserted.

No. Unless you exclude yourself, you give up any right to sue CSAC for the claims this settlement resolves. If you have a pending lawsuit, speak to your lawyer in that case immediately. You must exclude yourself from this Class to continue your own lawsuit. Remember, the exclusion deadline is May 20, 2023. Exclusion requests postmarked later than this date will not be honored.

No. But you may sue, continue to sue, or be part of a different lawsuit against CSAC about the same claims made.

The Court appointed Martin L. Daesch, sole member of MLD Law Firm, LLC; Jesse B. Rochman, sole member of JBR Law, LLC; Craig W. Richards of OnderLaw LLC; and OnderLaw, LLC to represent you and other Class Members. These lawyers are called Class Counsel. You will not be charged for these lawyers. They are experienced in handling similar cases against consumer lenders. More information about these lawyers and their firm is available at www.onderlaw.com. You needn’t hire your own lawyer because Class Counsel is working for you. If you want to be represented by your own lawyer, you may hire one at your own expense.

Class Counsel has prosecuted this litigation on a contingent basis and has incurred or advanced all costs, expenses, and attorneys’ fees associated with the lawsuit since their investigation of claims against CSAC in 2015. Class Counsel has not been paid for their work or received reimbursement for the expenses they have incurred or advanced for the Class Representative and Class Members. Class Counsel will ask the Court to approve payment of attorney’s fees that does not exceed 35% of the value of the settlement benefits, reimbursement for costs and expenses in an amount not to exceed $20,000. Class Counsel will also request that the Court approve payment of $10,000 to Sade M. Crawford for her services as Class Representative. The fees and expenses would pay Class Counsel for investigating the facts, litigating the case, negotiating the settlement, and paying the costs to administer the settlement.

If Class Counsel sues CSAC’s insurers (other than Federated and Auto Owners), Class Counsel will do so on a contingent basis and will incur additional costs, expenses and attorneys’ fees associated with suing these insurers. Class Counsel will not be paid for their work or receive reimbursement for the expenses they incur or advance associated with suing CSAC’s insurers. Class Counsel will ask the Court for up to 45% of any monetary recovery from CSAC’s insurers.

If you’re a Class Member, you can object to the settlement if you don’t like any part of it. You can explain why you think the Court shouldn’t approve it. The Court will consider your views. To object, you must appear in court at the Fairness Hearing on May 23, 2023 at 11:00 AM or send a letter saying you object to CSAC v. Sade Crawford, Case No. 1522-AC03346-02. Your letter must include your name, address, telephone number, facsimile number (if available), email address (if available), last four digits of your Social Security Number, a statement of your objections, and the reasons and facts you contend support your objections. Your objection must include any documents (including loan documents) you rely upon to support your objection and identify any witnesses you plan to use at the Fairness Hearing (described below). If there is other evidence (e.g., documents) that you rely upon for your objection, you must attach copies to your objection. If you plan to use expert witnesses about your objection, you must provide—with your objection—an expert report for each expert outlining the expert’s opinions and the facts and reasons for the expert’s opinions. You must also state whether you intend to appear at the Fairness Hearing and provide copies of any evidence you intend to use at the hearing. Finally, you must sign and date the objection and include a statement substantially in this form: “I declare (or certify, verify, or state) under penalty of perjury that all of the information in the objection is true and correct. Executed on (date). (Signature).”

Mail the objection to the Court, to Class Counsel, and to CSAC’s Counsel at the separate addresses below. Your objection must be postmarked no later than May 20, 2023 or you must appear in court at the Fairness Hearing.

If an attorney is submitting the objection for you, besides information and materials discussed above, the objection must include the name, address, telephone number, facsimile number (if available), and email address (if available) of your attorney and a detailed description of the legal authorities supporting each objection.

If you file an objection, Class Counsel or CSAC’s Counsel may notice and take your deposition, consistent with the Missouri Supreme Court Rules, at an agreed-upon location before the Fairness Hearing and seek any documentary evidence or other tangible things relevant to the objection. Failure by an objector to comply with discovery requests may cause the Court to strike the objection and otherwise deny that person the opportunity to be heard further. The Court reserves the right to tax the costs of any such discovery to the objector or objector’s counsel should the Court determine the objection is frivolous or is made for an improper purpose.

Objecting is telling the Court you don’t like something about the settlement. You can object only if you stay in the Class. Excluding yourself is telling the Court you don’t want to be part of the Class. If you exclude yourself, you have no basis to object because the case no longer affects you.

The Court will hold a Fairness Hearing at 11:00 AM on May 23, 2023, at the Twenty Second Judicial Circuit, 10 N. Tucker Blvd, St. Louis, Missouri 63101. At this hearing, the Court will consider whether the settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them. Judge Stovall-Reid will listen to people who have asked to speak at the hearing. The Court may also decide how much to pay to Class Counsel and the Class Representative. After the hearing, the Court will decide whether to approve the settlement. We don’t know how long these decisions will take.

No. Class Counsel will answer any questions Judge Stovall-Reid may have. But you are welcome to come at your own expense. If you send an objection, you don’t have to come to Court to talk about it. If you mailed your written objection on time with all the required information, the Court will consider it. You may also pay your own lawyer to attend, but that is unnecessary.

You may ask the Court for permission to speak at the Fairness Hearing. You may speak either for or against the settlement. To speak for the settlement, you must send a letter saying it is your “Notice of Intention to Appear in CSAC v. Sade Crawford, Case No. 1522-AC03346-02.” Include your name, address, telephone number, last four digits of your Social Security Number, and your signature. Your “Notice of Intention to Appear” must be postmarked no later than May 20, 2023, and be sent to the Circuit Clerk’s Office, Class Counsel, and CSAC’s Counsel, at the three addresses provided in question 18.

If you plan to speak at the Fairness Hearing to tell the Court you don’t like something about the settlement, you must submit an objection as detailed in question 18 and include with that objection a statement you intend to appear at the Fairness Hearing. The identity of any witnesses or experts you plan to present at the Fairness Hearing, with evidence you intend to present at the Fairness hearing, must also be included with your objection.

You cannot speak at the hearing if you excluded yourself or if you don’t send in a request with the required information and documents.

This notice summarizes the proposed settlement. More details are in the Settlement Agreement. You can get a copy of the Settlement Agreement by writing to CSAC v Sade Crawford c/o Settlement Administrator, P. O. Box 23369, Jacksonville, FL, 32241, or by going to the Important Court Documents section of this website.

You can call 1-877-312-9133; write to CSAC v Sade Crawford c/o Settlement Administrator, P. O. Box 23369, Jacksonville, FL, 32241, or use this website, where you will find information to help you determine whether you are a Class Member.