NOTICE OF CLASS ACTION AND PROPOSED SETTLEMENT NOTICE TO PERSONS WHO PAID LATE FEES TO FORD MOTOR CREDIT COMPANY ON VEHICLE LEASES AFTER SEPTEMBER 24, 1992
Your rights may be affected by the above-entitled lawsuit which is pending in the San Francisco Superior Court (the Court). The lawsuit has been certified as a class action, and the Court has tentatively approved a settlement. This notice explains how the settlement may affect your rights and what you can do about it.
The Lawsuit. The lawsuit was brought by Connie Stickles and others on behalf of the class defined below. The lawsuit alleges that from September 24, 1992 to the present, defendant Ford Motor Credit Company (“Ford Credit”) has charged lessees who make late payments on their vehicle leases late payment fees exceeding those permitted by law.
The lawsuit alleges that the excessive late payment fees violate the federal Consumer Leasing Act as well as various state law restrictions on the amounts that can be charged as late fees in vehicle leases or as liquidated damages.
Ford Credit denies the lawsuit’s claims and denies that it charged lessees more than legally allowed.
The Class. The court has certified a plaintiff class in the lawsuit. The plaintiff class includes all persons in the United States (including the District of Columbia) but excluding Maine and Oklahoma, who at any time after September 24, 1992 entered into a motor vehicle lease for which Ford Credit either directly or by assignment from a dealer, provided retail lease financing; and who (1) made one or more required lease payments after the payment due date; (2) were thereafter charged late fees by Ford Credit; (3) paid those late fees and (4) are not subject to counter claims from Ford Credit.
The Proposed Settlement. The parties have reached a proposed settlement of this action, which the attorneys for the plaintiff class believe is fair, reasonable, adequate and in the best interests of class members.
The proposed settlement provides:
Ford Credit will pay Eligible Ford Credit Class Members who submit timely and adequate claims a sum equal to 36.25% of the total amount of late fees they paid Ford Credit under Eligible Leases between September 24, 1992 and March 1, 2002. For example, an Eligible Class Member who paid Ford Credit a $30 late fee in 2001 and submitted a timely and adequate claim would be entitled to receive a refund of $10.88 under the settlement.
An Eligible Class Member who paid Ford Credit late fees of $100 in 2000, and submitted a timely and adequate claim would be entitled to receive a refund of $36.25. In no event will Ford Credit pay out more than $80 million in late fee refunds under the settlement.
An Eligible Class Member is a member of the Plaintiff Class who paid one or more late fees under Eligible Leases, submits a timely and adequate claim, and does not owe Ford Credit any sum under a terminated lease. An Eligible Lease is one that was assigned to Ford Credit.
Under the settlement, Ford Credit has also agreed to pay the cost of sending this notice, and or receiving, processing and paying class members’ claims.
Releases. In return for the payments described above, members of the plaintiff class will release (give up) all claims against Ford Credit or any prior or later holder of the motor vehicle lease, under the Consumer Leasing Act, state personal property or motor vehicle leasing laws, state liquidated damage laws, or state common law rules, for any disclosures or non-disclosures in connection with, or the charging or collection of any monies for, any fee or other charge for delinquency, default or late payment in connection with a Covered Lease. This settlement does not apply to any late payments which might be charged and collected by Ford Motor Credit Company after March 1, 2002.
Attorney’s Fees. The settlement agreement provides that, subject to court approval, in addition to the amounts payable to class members, Ford Credit will pay $7,000,000 to plaintiffs’ attorneys, Friedman, Collard, Cutter & Panneton, Shipman & Goodwin, and Rawlings & Associates, as attorneys’ fees and costs for their work in this case, including their fees and costs in implementing the settlement agreement.
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