Norton v. LVNV Funding LLC

 United States District Court Northern District of California -  Case No. : 18-cv-05051-DMR

What is the Action about?
Plaintiff claims that the Defendants violated the federal Fair Debt Collection Practices Act, California’s Fair Debt Collection Practices Act, and California’s Unfair Competition Law (Business and Professions Code section 17200) by taking judicial action to collect a judgment which had been acquired from Arrow Financial Services, without LVNV becoming the assignee of record prior to enforcing the judgment by means such as wage garnishment and bank levy. For a copy of the Third Amended Class Action Complaint, please click here.

The Class consists of all California residents who meet the following conditions:

  1. LVNV Funding, LLC, represented by Law Office of Harris & Zide, took judicial action (including obtaining Writs of Execution, wage garnishment, and bank levy) after August 17, 2014 (four years prior to the filing of this action) to collect a judgment based on a consumer debt obtained in a California court;
  2. Arrow Financial Services, LLC was the plaintiff of record at the time the judgment was entered; and
  3. LVNV Funding, LLC did not file an Assignment of Judgment in conformity with California Code of Civil Procedure § 673 or otherwise become the assignee of record.
The Court also certified a Subclass, which is defined the same as the Class, except that “August 17, 2017” is substituted for “August 17, 2014.”
What relief does the settlement provide to the Settlement Class Members?
The settlement will provide full reimbursement to valid claimants of all amounts collected by Defendants by judicial action such as wage garnishment and bank levy after August 17, 2014 plus 7 percent interest from the time of collection. Only those individuals who timely submit the Claim Form in full will be eligible for this benefit. The form must be postmarked, emailed, or filled out online, by December 6, 2021.

The settlement will also provide a fund of $50,000.00 to be divided equally between a Subclass of individuals whose judgment was subject to judicial enforcement efforts after August 17, 2017 who timely submit the Claim Form as described above. The amount received will depend on the number of Subclass members who timely fill out and return the Claim Form as described above.

The settlement also prohibits Defendants from collecting or attempting to collect any costs incurred while attempting to collect the judgments without LVNV becoming the “assignee of record”, as well as interest accrued on the costs. Examples of costs are Writ of Execution fees and Levying Officer Fees. This benefit is available to all individuals receiving this notice, regardless of whether they return the Claim Form. No action is required to receive this benefit.

The settlement prohibits Defendants from collecting or attempting to collect all “Closed Accounts” and prohibits Defendants from selling or transferring these “Closed Accounts” to other companies. This benefit is available regardless of whether Class Members return the Claim Form. You may contact the Class Administrator to find out if the judgment against you is a “Closed Account.”

What are my options?
DECEMBER 6, 2021.
Receive Cash.

If you fill out, sign and submit the Claim Form, stating under penalty of perjury that the financial obligation you were sued for was “consumer debt” you will receive the amount which was collected from you by judicial action such as wage garnishment or bank levy, interest. You will also receive an equal share of $50,000.00 if you are in a Subclass of individuals whose attempts to enforce the judgment were made after August 17, 2017.
DECEMBER 6, 2021
Don’t receive any benefit from the settlement. Maintain your right to file a separate lawsuit against the Defendants.

Send a letter to the settlement administrator, as required by this Notice, with your name and a statement that you request exclusion from the class.

For more information on excluding yourself from the Settlement, please read the Long Form Notice, by clicking here.
DECEMBER 6, 2021
Ask to the Court to deny approval of the settlement.

You can’t ask the Court to order a larger settlement; the Court can only approve or deny the settlement. If the Court denies approval, no settlement benefits will be provided, and the lawsuit will continue. If that is what you want to happen, you must object.
JANUARY 13, 2022
Ask to speak in Court about the fairness of the settlement.
DO NOTHING If you do nothing, you will be eligible to receive some of the benefits of the settlement described above, but you will NOT receive cash.


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