DEBRA FEALY v. SOUND CREDIT UNION

Sound Credit Union’s records show that on or after February 11, 2016, you may have been overcharged for collateral protection insurance premiums, or related fees or interest. This notice explains that the parties have reached an agreement to settle a class action lawsuit that may affect you. You have legal rights and options that you may exercise before the Court decides whether to approve the settlement. A Judge of the Superior Court of the State of Washington for Pierce County is overseeing this class action. The lawsuit is known as Fealy v. Sound Credit Union, Case No. 20-2-04853-0.

Plaintiff alleges that Sound Credit Union violated the Washington Consumer Protection Act and Washington common law by, among other things, (i) charging borrowers for collateral protection insurance premiums for which they should not have been charged; (ii) failing to fully refund unearned premiums; and (iii) charging unauthorized fees and interest. Sound Credit Union denies Plaintiff’s allegations, but has agreed to resolve this case in order to stop incurring costs and fees of litigation.

In a class action lawsuit, one or more people called plaintiffs and “class representatives” (in this lawsuit Debra Fealy) sue on behalf of other people who have similar claims. The people together are a “class” or “class members.” The party they sue (in this case Sound Credit Union) is called the defendant. If the lawsuit proceeds as a class action, it resolves the issues for everyone in the class—except for those people who choose to exclude themselves from the class.

The Court did not decide in favor of Plaintiff or Sound Credit Union. Instead, both sides agreed to a settlement. This way, they avoid the cost and risks associated with a trial, and the people potentially affected will receive compensation. Plaintiff and her attorneys think the settlement is in the best interest of the Settlement Class Members.

You are in the Settlement Class if you resided in Washington, financed a motor vehicle through Sound Credit Union, and at any point on or after February 11, 2016, were charged more for, or as a result of, collateral protection insurance than you otherwise would have been charged if Sound Credit Union had: (i) notified you earlier or differently of alleged deficiencies in insurance coverage, (ii) used a pro rata refund method, (iii) not charged an administrative fee, or (iv) not received an administrative reimbursement from the collateral protection insurance carrier or third-party collateral protection insurance administrator.

The Settlement Class does not include any persons who validly request exclusion from the Settlement Class, as described under Question 12. A person who does not exclude him or herself is a “Settlement Class Member.”

If you have questions about whether you are part of the Settlement Class, you may call (888) 267-0132 or visit Important Court Documents section for more information.

To settle this lawsuit, Sound Credit Union has agreed to pay $750,000 into a Settlement Fund which will provide individual payments to eligible Settlement Class Members, a service award payment to the Class Representative, attorneys’ fees and reimbursement of out-of-pocket litigation costs, and the costs related to settlement administration.

Settlement Class Members will receive a cash payment equal to their proportional share of the allegedly wrongful collateral protection insurance premiums, fees, and interest charged by Sound Credit Union.

Your estimated settlement award will be at least $10, and may be as high as $2,000.

If you do not request to exclude yourself from the settlement, the settlement administrator will send a check with your settlement award to you. You do not need to file a claim form. If you have questions about how settlement payments will be made or need to update your mailing address before the settlement payment distribution, you should contact the settlement administrator at [email protected].

The tax implications may vary based on your income, the amount you receive and other factors, so you should consult a tax professional to assess the specific tax implications of any payment you may receive. Class Counsel, Sound Credit Union, and the settlement administrator cannot advise you with respect to your tax obligations.

If you received a postcard and you do not request to exclude yourself from the settlement, you will automatically receive the benefits of the settlement and receive a payment. You do not need to submit a claim to receive the benefits of the settlement or to get a payment—it’s automatic. If your mailing address changes before the distribution, you should contact the settlement administrator at [email protected] or Update Address to update your information.

If no appeals are timely filed after the Court enters the Final Approval Order, then the Order and settlement will become final. You will receive your settlement payment approximately 30 days from the Settlement’s Effective Date (roughly 60 days after the Final Approval Hearing). When the settlement becomes effective, the settlement administrator will mail you a check. The checks will only be valid for 120 days from the date of issuance, after which you will not be able to cash or deposit them. However, if an appeal is filed, payments will not be sent until after the appeal is finally resolved.

Unless you request to exclude yourself, you are staying in the Settlement Class and you will be a Settlement Class Member. If the Court approves the settlement, you and other Settlement Class Members can’t sue, continue to sue, or be part of any other lawsuit against Sound Credit Union regarding Sound Credit Union’s placement of collateral protection insurance between February 11, 2016 and the Settlement’s Effective Date.

The Settlement Agreement (available in the Important Court Documents section) describes the claims you are releasing (the “Released Claims”) and against whom you are releasing claims, so read it carefully.

To “opt out” or exclude yourself from the settlement you must send the request in writing to the settlement administrator saying that you want to be excluded from the Fealy v. Sound Credit Union settlement. You must include your name and address in the letter. You can mail your exclusion request letter, which must be postmarked no later than August 29, 2022 to the following address:

Fealy v. Sound Credit Union
c/o Settlement Administrator
PO Box 23668
Jacksonville, FL 32241

Requests for exclusion mailed after August 29, 2022 will not be effective and will not result in your being excluded from the Settlement Class.

If you ask to be excluded, you will not get any payment, and you cannot object to the settlement. You will not be legally bound by anything that happens in this lawsuit.

If you already have, or want to bring, your own lawsuit against Sound Credit Union regarding collateral protection insurance and want to continue with the lawsuit, you need to ask to be excluded from the Class. If you exclude yourself from the Class—which also means to remove yourself from the Class and is sometimes called “opting-out”—you won’t get any money from the settlement between Sound Credit Union and Plaintiff. However, you may be able to sue or continue to sue Sound Credit Union regarding collateral protection insurance on your own. If you exclude yourself, you will not be legally bound by the Court’s judgments in this class action.

No. You will not receive any payment from the settlement if you exclude yourself.

The Court decided that the law firms of Terrell Marshall Law Group PLLC of Seattle, WA and Smith & Dietrich Law Offices, PLLC of Olympia, WA, are qualified to represent you and all Settlement Class Members. These law firms are referred to as “Class Counsel.” You will not receive a bill from these lawyers, who have asked the Court to be paid a percentage of the Settlement Fund. If you want to be represented by your own lawyer, you may hire one at your own expense. The names and addresses of Class Counsel are:

You do not need to hire your own lawyer because Class Counsel are working on your behalf. But, if you want to hire your own lawyer, you will have to pay that lawyer. For example, you can ask a lawyer to appear in Court for you if you want someone other than Class Counsel to speak for you.

Class Counsel will ask the Court to approve payment to them of $250,000, which is one-third of the $750,000 Settlement Fund, for attorneys’ fees and out-of-pocket expenses. This payment compensates Class Counsel for investigating the facts, litigating the case, and negotiating the settlement. Class Counsel will also request a service award of $5,000 for the Class Representative, Debra Fealy, payable out of the Settlement Fund to compensate her for her time and effort during the litigation. Class Counsel’s complete request for fees, costs, and the service award to the Class Representative will be posted in the Important Court Documents section. The Court may award less than these amounts.

If you are a Settlement Class Member and you do not exclude yourself from the Settlement Class, you can object to the settlement if you don’t like any part of it. Your written objection must provide your name, address, telephone number, and the reason(s) for your objection and meet the criteria described in the Settlement Agreement. You must mail a copy of the objection to the following addresses postmarked no later than August 29, 2022 and file it with the Court:

Objecting simply means telling the Court that you don’t like something about the settlement. You can object only if you stay in the Settlement Class. Excluding yourself from the Settlement Class is telling the Court that you don’t want to be part of the Settlement Class. If you exclude yourself, you have no basis to object because the case no longer affects you.

The Court will hold the Final Approval Hearing on September 16, 2022 at 9:00 a.m., before the Honorable Gretchen Leanderson of the Superior Court of the State of Washington for Pierce County, 930 Tacoma Avenue South, Tacoma, WA 98402, Department 15. The purpose of the hearing is for the Court to determine whether the Settlement is fair, reasonable, adequate, and in the best interest of the Settlement Class. At the hearing, the Court will hear any objections and arguments concerning the fairness of the proposed settlement, including those related to the amount requested by Class Counsel for attorneys’ fees and expenses and the service award to the Class Representative. After the hearing, the Court will decide whether to approve the settlement. We do not know how long these decisions will take.

The date and time of the Final Approval Hearing are subject to change by Court Order. Any changes will be posted in the Key Dates section.

No. Class Counsel will answer any questions the Court may have. You are welcome to come to the hearing at your own expense. If you send an objection you don’t have to come to Court to talk about it, as long as your written objection was filed or mailed on time, and meets the other criteria described in the Settlement Agreement, the Court will consider it. You may also pay a lawyer to attend, but you don’t have to.

If you do not exclude yourself from the Settlement Class, you may ask the Court for permission to speak at the hearing concerning any part of the proposed Settlement Agreement. If you submit an objection (see Question 18 above) and intend to appear at the hearing, you must state your intention to do so in your objection. To speak, you must send a letter saying that it is your “Notice of Intention to Appear” in Fealy v. Sound Credit Union, Case No. 20-2-04853-0. Be sure to include your name, address, telephone number, and your signature, and state that you are a Class Member. Your Notice of Intention to Appear must be postmarked no later than (10) days before the Final Approval Hearing and be sent to the Court, Class Counsel, and Defense Counsel at the addresses set forth below. You cannot speak at the hearing if you exclude yourself.

If you do nothing, you will be a member of the Settlement Class and you will receive payment from the settlement. You will also be bound by the terms of the settlement, including the Release described in Section 11, above.

This notice summarizes the proposed settlement. More details are in the Settlement Agreement. You may review and download or print a copy of the Settlement Agreement in the Important Court Documents section.. You can also get a copy of the Settlement Agreement by writing to Fealy v. Sound Credit Union, c/o Settlement Administrator, PO Box 23668, Jacksonville, FL 32241.

You can call 1-888-267-0132 toll free; write to Fealy v. Sound Credit Union, c/o Settlement Administrator, PO Box 23668, Jacksonville, FL 32241.; or visit the Important Court Documents section where you will find answers to common questions about the settlement, the Settlement Agreement, Plaintiff’s Complaint, Class Counsel’s motion for an award of attorneys’ fees and costs, and other information.