JESSE SHAINLINE v. TRI COUNTY AREA FEDERAL CREDIT UNION

The Court approved this notice because you have a right to know about a proposed settlement of a class action lawsuit, and about all of your options, before the Court decides whether to approve the settlement. If the Court approves it, and objections and appeals (if any), are resolved, the Settlement Administrator will make the payments the settlement allows. 

The Court in charge of the case is the Court of Common Pleas of Beaver County, Pennsylvania, and the case is known as Jesse Shainline, individually and on behalf of all others similarly situated, v. Tri County Area Federal Credit Union, No. 2023-10318.  The person suing is Jesse Shainline, the Plaintiff (also called “Class Representative”) and the company being sued, Tri County Area Federal Credit Union, is called the Defendant, or “TCA.”

This package explains the lawsuit, the settlement, your legal rights, what benefits are available, who is eligible, and how to get them.

TCA’s records reflect that you and any co-borrower on your vehicle loan were sent a notice from TCA following the repossession of your vehicle(s) between August 22, 2016 through October 17, 2022. TCA’s conduct post-repossession, including its use of these notices, forms the basis for this lawsuit.

The lawsuit claims that TCA violated Pennsylvania law by failing to send its borrowers proper notice after repossessing their vehicle(s).  Specifically, Plaintiff asserts on behalf of himself and a class of borrowers that the notices sent by TCA failed to contain certain disclosures required under Pennsylvania law. 

TCA denies that its notices violated any law, and TCA asserts that it satisfied all of the legal requirements as to its notices. TCA asserts other defenses. TCA further contends that many of the members of the Class owe TCA money for balances still due on their accounts following the sale of their repossessed vehicle(s) at auction.

In a class action, one or more people called Class Representatives (in this case Jesse Shainline) sue on behalf of all people who have similar claims. All these people are “Class Members,” and grouped together are a “Class.” One court resolves the issues for all Class Members, except for those who exclude themselves from the Class. TCA has challenged whether this case should proceed as a class action but has agreed not to oppose this case proceeding as a class for settlement purposes only.

Plaintiff believes the Class might have won more money than the settlement amount had the case gone to trial, but substantial delays and risks would have occurred, including the risk of the case not being certified as a class. TCA believes that the claims asserted in the case are without substantial merit, and that the Plaintiff may have recovered nothing if there had been a trial. But, there has been no trial.  Instead, both sides agreed to a settlement. That way, they avoid the cost of a trial and appeal, and class members like yourself will get compensation and other settlement benefits promptly. The Class Representative and his attorneys think the settlement is best for all Class Members.

If you received this Notice in the mail, TCA’s records reflect that you are part of the Class certified by the Court, which includes all persons (a) who purchased a vehicle as a consumer good; (b) who financed the vehicle purchase through TCA, or whose vehicle loan agreement or installment sale contract was later assigned to TCA; (c) from whom TCA, as secured party, repossessed the vehicle; (d) who had a Pennsylvania address as of the date of repossession; (e) who were sent a post-repossession Notice; (f) in the period commencing August 22, 2016 to October 17, 2022.

• Cash Component: 
  • TCA has agreed to create a Settlement Fund of $570,000.00. Approved administrative costs, Class Counsel fees and expenses, and a service award for the Class Representative will be paid from that fund.  The Net Fund that remains will be distributed to the members of the Classes.
  • If fees and expenses are allowed as requested, it is expected that your cash payment will be the amount stated on the first page of this letter, unless there were multiple borrowers on your loan in which case you will receive a portion of this amount. This amount will be sent to you by check unless you promptly contact the Settlement Administrator to request one of the other available payment methods it offers. See the enclosed election form
  • If after the first distribution to the Class more than $20,000 remains in the Net Fund (typically from uncashed or undistributable checks), there will be a second distribution to the Class. A balance remaining after the second distribution will be paid to the cy pres beneficiaries as follows: 50% to Pennsylvania Interest on Lawyers Trust Account (“IOLTA”); 25% to Legal Aid of Southeastern Pennsylvania, Inc.; and 25% to MidPenn Legal Services.
• Credit Reporting Relief:  TCA will request that the Credit Reporting Agencies update your credit report to remove any reference to the auto loan account with TCA.  Details about how and when this will be done, and limits on TCA’s obligation to provide credit reporting relief are spelled out further in the Settlement Agreement.
• Elimination of disputed Deficiency balances:  If you have been advised by TCA that there is a shortfall after the auction of your repossessed vehicle, that balance claimed due is called a “Deficiency” or “Deficiency Balance.”  TCA’s right to these Deficiency Balances is disputed by the parties. Your Deficiency Balance on your vehicle loan will be eliminated as a result of this settlement. The total Deficiency Balances claimed due sums to approximately $550,429.85.

This settlement has potential tax implications for you.  The Settlement Administrator plans to issue IRS 1099-series forms for cash payments over $600. You may be required to furnish your Social Security Number to the administrator as a condition of payment of settlement proceeds over $600. 

The elimination of your disputed Deficiency Balance could also have tax implications, as cancellation of indebtedness can be considered income by tax authorities. You should consult your tax advisor for questions.

No. You do not need to do anything further to remain in the Class. You will get a payment and any credit reporting benefit automatically, assuming court approval of the Settlement.

No. Any outstanding debt remaining after the auction of your repossessed vehicle will automatically be eliminated upon final approval of the settlement by the Court.

The Court will hold a hearing on Friday, January 3, 2025 at 9:00 A.M. at Courtroom (TBD), Montgomery County Courthouse, 2 E. Airy Street, Norristown, PA 19404 to decide whether to approve the settlement.  If the Court approves the settlement after hearing, there may be appeals.  It is always uncertain whether there will be an appeal and if so, when it will be resolved. Please be patient.

Unless you exclude yourself, you will stay in the Class, and that means that you can’t sue, continue to sue, or be part of any other lawsuit against TCA related to your repossessed motor vehicle.  It also means that the Court’s orders will apply to you and legally bind you. Unless you “opt-out” or exclude yourself from this case, you will automatically be deemed to have agreed to a release of claims set forth in the Settlement Agreement, which can be found in the Important Court Documents section.

If you do not want a payment or other benefits from this settlement but you want to keep the right to sue or continue to sue TCA for a claim related to your repossessed motor vehicle, then you must take steps to get out of the Class. This is called excluding yourself – sometimes referred to as “opting out” of the Class.

To exclude yourself from the settlement, you must send a letter to the Settlement Administrator, with copies to counsel, by mail (first class, postage pre-paid) saying that you, as well as any and all other person(s) who signed your vehicle loan, want to be excluded from Jesse Shainline v. Tri County Area Federal Credit Union, No. 2022-16043. Be sure to include your name, address, email (if available), telephone number and your signature.  Mail your exclusion request postmarked no later than December 5, 2024 to all of three different addresses below.

No.  If you exclude yourself, you will not receive any money from this lawsuit or settlement, credit report deletion, elimination of any disputed Deficiency Balance, or other relief that this Class Settlement provides. 

The Court has approved the law firm of Flitter Milz, P.C., in Narberth, PA, to represent you and other Class Members.  These lawyers are called Class Counsel.  You will not be charged individually for these lawyers.  If you want to be represented by your own lawyer, you may hire a firm at your own expense.

As part of the class settlement, Plaintiff will ask the court to approve a $12,500 service award for his time and effort in bringing this case. Plaintiff will ask the Court to approve a payment out of the settlement fund in the amount of $228,000 for Class Counsel fees and up to $5,000 for reimbursement of expenses. The fees would pay Class Counsel for investigating the facts, litigating the case, negotiating the settlement, filing legal papers with the Court, and oversight of future implementation of the settlement, including fielding inquiries from Class Members.  Class Counsel has not been paid for its time or services since this case was originally filed in August 2022.  The Court could award less than this amount.

If you are a Class Member, you can object to the settlement if you don’t like any part of it.  You should state why you object and why you think the Court should not approve the settlement.  The Court will consider your views.  To object, you must file an objection, or send a letter saying that you object to the settlement in Jesse Shainline v. Tri County Area Federal Credit Union, No. 2022-16043. Please be sure to include your name, address, email address (if available), telephone number, your signature, and the reasons you object to the settlement.  Mail the objection to all of the three different places listed in Section 12 above, postmarked no later than December 5, 2024, and file with the Court of Common Pleas of Montgomery County, 425 Swede Street, Norristown, PA 19401.

Objecting is telling the Court that you don’t like something about the settlement, and that you, for that reason, want the settlement not to be approved. You can object only if you stay in the Class.  Excluding yourself is telling the Court that 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 hearing to decide whether to approve the settlement. You may attend and you may ask to speak, but you don’t have to, and attendance is not required or expected unless you advise that you intend to appear or have your lawyer appear.

The Court will hold a Fairness Hearing on Friday January 3, at 9:00 A.M., at Courtroom (TBD), Montgomery County Courthouse, 2 E. Airy Street, Norristown, PA 19404.  At this hearing, the Court will consider whether the settlement is fair, reasonable, and adequate and meets the test for class action settlements.  If there are objections, the Court will consider them. The Court will listen to people who have asked to speak at the hearing.  The Court may also determine the Class Representative Service Award and Class Counsel fees and expenses.  Following the hearing, the Court will decide whether to approve the settlement.  We do not know how long these decisions will take.

No.  Class Counsel will answer any questions the Court may have.  But you are welcome to come at your own expense.  If you file an objection, you don’t have to come to Court to talk about it, but you may. As long as you properly mailed (or electronically filed) your written objection on time, the Court will consider it. You may also pay your own lawyer to attend, if you wish.

You may ask the Court for permission to speak at the Fairness Hearing. To do so, you or your lawyer must send a letter stating that it is your “Notice of Intention to Appear in Jesse Shainline v. Tri County Area Federal Credit Union, No. 2022-16043.”  Your Notice of Intention to Appear must be filed or mailed so as to be filed with the Court no later than December 5, 2024, and be sent to the Court of Common Pleas of Montgomery County, 425 Swede Street, Norristown, PA 19401, to Class Counsel, to Defense Counsel, and to the Settlement Administrator at the addresses set forth in Section 12. You cannot speak at the hearing if you exclude yourself from the settlement.

If you do not exclude yourself and the Court finally approves the settlement, you will receive a settlement payment(s), elimination of your disputed Deficiency Balance (if any), and credit reporting relief as provided in the Class Action Settlement Agreement. 

This notice summarizes the proposed settlement.  The pleadings and other records in this litigation, including a copy of the Settlement Agreement, may be examined at any time during regular office hours at the Court of Common Pleas of Montgomery County, 425 Swede Street, Norristown, PA 19401. These documents are in the Important Court Documents section.

You may also contact the following:

Shainline v. TCA Class Settlement
c/o Settlement Administrator
P O Box 23648
Jacksonville, FL 32241

 
or

 
Class Counsel
FLITTER MILZ, P.C.
450 N. Narberth Avenue, Suite 101
Narberth, PA 19072

1-888-668-1225

Please do not call the Court, TCA, or TCA’s counsel.