Check 'n Go Settlement Repayments


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Check 'n Go Settlement Repayments

  1. 1. Check ‘n Go Settlement Repayments December 28, 2012 through March 28, 2013 1
  2. 2. Agenda• Introductions• Summary of case• Summary of repayments• Summary of claim process• Outreach,• Questions/Discussion 2
  3. 3. • San Francisco City Attorney Dennis Herrera and Check ‘n Go have reached a settlement requiring Check ‘n Go to repay California consumers who took out certain online “installment” loans up to $4.3 million. 3
  4. 4. • The lawsuit was filed on behalf of ALL Californians statewide against Cincinnati- based Check ‘n Go alleging that they engaged in an illicit “rent-a-bank” scheme aimed at skirting California’s maximum allowable annual interest rate of no more than 36 percent for that type of loan. 4
  5. 5. Who is eligible to make a claim for repayment?• You are eligible to make a claim for repayment if: between November 2006 and June 2008 you borrowed a four-month installment loan online via the web site(s) , and/or 5
  6. 6. How much of a repayment?• The amount of repayment will depend on each claimant’s particular circumstances and the total amount of repayments sought by all eligible claimants.• Estimated payment range per claimant is $20 to $4,600 6
  7. 7. • Payment amount to be paid to each eligible claimant will be equal to 68.5% of that claimant’s Base Amount.• If the combined total of all payment amounts calculated pursuant to the below formula is greater than $4.3 million, then each eligible claimant’s payment amount will be reduced proportionately to bring the combined total of all payment amounts to $4.3 million. 7
  8. 8. • The Settlement Administrator will calculate the Base Amount by: – Determining the total amount of interest, fees, and finance charges that were paid by the claimant in connection with any of the unlawful loan(s); and – Subtracting from this total the amount of (i) any unpaid principal owed by the claimant on any of the unlawful loans and (ii) any unpaid principal on any other loan obtained by the claimant from Check ‘n Go. – The dollar amount resulting from subtracting unpaid principal from total interest, fees, and finance charges paid is the “Base Amount.” 8
  9. 9. How to claim repayment• Complete the official Claim Form and provide a copy of your identification document and mail both directly to the third-party Settlement Administrator, Dahl Administration.• It must be postmarked by March 28, 2013.• Accepted forms of identification are listed on the Notice attached to the Claim Form. 9
  10. 10. • Check ‘n Go, via the Settlement Adminstrator was required to make a “reasonable effort” to find claimants by mailing the Notice and Claim Form, however people may have moved, didn’t understand, or mistook the mailing as junk mail. 10
  11. 11. How to get a Claim Form• Download one at• Request one by calling the CALoanRefund/SF 3-1-1 Settlement Hotline toll free: (855) 581- 2350• Request one by emailing: 11
  12. 12. How you can help outreach• “How to Help” tab on• Newsletters• Email blasts• Social media posts• Flyers/Posters• Contact your local and neighborhood press• Inserts/Other 12
  13. 13. • “How to Help” tab on 1. Get updates. Invite your network to join via Facebook and Twitter 2. Share the web site. One click to share on Facebook, Twitter, Google+, LinkedIn, email, use hashtags (also used by payday lenders) 3. Blog all about it. Post a short post on your blog or Tumblr site, link back to this page. Use example text provided. 13
  14. 14. • “How to Help” tab on 4. Download and distribute posters and flyers 14
  15. 15. • “How to Help” tab on 5. Embed our banner(s) on your website, blog, email blasts and/or newsletters 15
  16. 16. • “How to Help” tab on 6. Example articles. “Cut and paste” our sample articles and posts • 500+ words • 250 words • 100 words “Share” and “re-tweet” up-to-the-minute content from and @SFCityAttorney on Twitter. Look for creative social media tools at these sights as well 16
  17. 17. • “How to Help” tab on 6. Example articles. “Cut and paste” our sample articles and posts • 500+ words • 250 words • 100 words 7. “Share” and “re-tweet” up-to-the-minute content from and @SFCityAttorney on Twitter. Look for creative social media tools on these sites as well. 17
  18. 18. • “FAQ” tab on answers these questions – Am I eligible to make a claim for repayment? – How do I make a claim for repayment? – Is there a list of people who qualify? Am I on the list? – How can I track the status of my claim? – When will repayments be made to eligible claimants? 18
  19. 19. • “FAQ” tab on answers these questions – Does this settlement only apply to Check ‘n Go? – Is the Claim Form available in any other languages? – Why wasn’t a Claim Form mailed directly to me? – What are some affordable alternatives to takin out “pay day loans” from lenders like Check ‘n Go? 19
  20. 20. Discussion• Claim Form and information:• SF 311/CA Loan Refund Settlement Hotline (toll free): (866) 497-5497• Email:• Facebook:• Twitter: @sfcityattorney• Kevin Easton, Coordinator, Community Relations, Office of City Attorney Dennis Herrera (415) 554-4706, 20