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Judge Rejects DA Bad Check Restitution Class Action Settlement

By Kimberly Mirando

 

DA Bad Check Settlement UpdateBad news for Class Members of the DA Bad Check Restitution Program Class Action Settlement – a federal court did not grant final approval at the Final Fairness Hearing.

In a court order dated November 15, U.S. District Judge Jeffrey S. White denied final approval of the class action lawsuit settlement, which would have provided $75 cash to individuals who received a District Attorney Bad Check Restitution Program Notice in California between 2006 and 2011 or in Pennsylvania between 2004 and 2011.

Judge White said he found the proposed settlement to be “problematic” in light of the altered class definition that would have included any person who received a letter, regardless of whether or not they paid any fees.  This increase in class size “significantly diminished” any potential monetary recover for the class, he said.

Judge White also found problems with the release that Class Members would be held to, which would not prevent National Corrective Group (NCG) from continuing to contact Class Members about the diversion program and/or attempting to collect fees challenged in the class action lawsuit.

Moreover, Judge White found the notice of the class action lawsuit settlement to be “troubling,” because notice was only mailed to Class Members who were mailed letters by National Corrective Group and not to Class Members who received letters from American Correction Counseling Services (ACCS). That left an estimated 58% of proposed Class Members in California and 69 percent of the proposed class in Pennsylvania not receiving notice of the class action lawsuit settlement.

Finally, the Judge White said the proposed injunctive relief “does not appear to provide much relief or benefit for the class.”

Judge White denied the motion for final approval of the class action settlement, but is allowing the parties to address the concerns and file an amended settlement agreement.

In the meantime, the Settlement Administrator Website for the DA Bad Check Restitution Program Class Action Settlement has been taken down. We will continue to provide updates on the settlement as we receive them.

 

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Updated December 24th, 2012

 

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6 Comments

  • Deborah Eikmeier January 7, 2013

    I remarried since this happened. my name before was Deborah Smith it is now Deborah Eikmeier. Please keep me informed

  • John J. February 21, 2013

    I sure hope they filed an amended settlement. The thing that is “troubling” to me is that the judge thinks that the “injunctive relief does not appear to provide much relief or benefit for the class.” WHAT?! A check for $75 as relief for being threatened to take some costly credit counseling class in addition to having to pay the DA Office tripled amounts of checks I wrote by accident (it’s a long story) is at least some relief for me! Show me the money!

  • patricia December 21, 2013

    $75.00 is not enough. I had to fork over about $400.00 for a little $15.00 dollar check. I even sent in a replacement check, as the company asked. Then received a letter with the voided check stated they are going to prosecute me though the DA, if I didn’t pay a bunch a fees and attend a class. I was treated like a criminal. I have never been arrested in my life. So I expect more compensation than this!

  • Renea February 11, 2014

    Yeah they tripped I payed for two bad checks almost 685!! My checks was very small! So forget 75!!!!

  • tabitha cziuzas March 28, 2014

    please keep us posted on this

  • Hope April 8, 2014

    yeah i was hoping to replace my car that was stolen from me ! really needed it to contuine to work .Thanks judge !! good looking out for the little people of the world.

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