Abat v. Chase Bank Debt Management Plan & Credit Counseling Agency Class Action Lawsuit Settlement

If you are an individual who had a debt management plan for which you paid either initial or monthly fees to any credit counseling agencies affiliated or related at any time to Andris Pukke, Eriks Pukke, DebtWorks, Inc. or the Ballenger Group, your rights may be affected by a class action settlement.

A class action settlement has been reached in a class action lawsuit against Chase Bank USA, N.A. (“Chase Bank” or “Chase” or “Defendant”) pending in the United States District Court for the Central District of California (styled Abat, et al. v. Chase Bank USA, N.A., et al., Class Action Case No. SACV 07-1476-CJC (ANx)) alleging, among other things, that plaintiffs were induced to pay fees and/or make contributions to certain credit counseling agencies (“CCAs”) in connection with debt management plans (“DMPs”), that these credit counseling agencies misrepresented themselves as non-profit agencies and that Chase Bank benefited from the credit counseling agencies’ allegedly false statements, according to the Chase Bank Debt Management Plan & Credit Counseling Agency class action settlement notice.

Chase Bank Debt Management Plan & Credit Counseling Agency settlement class members reportedly include the following persons, unless otherwise excluded:

You are a “Settlement Class Member” if you are an individual who had a DMP for which you paid either initial or monthly fees to any CCA affiliated or related at any time to Andris Pukke, Eriks Pukke, DebtWorks, Inc. or the Ballenger Group LLC, including without limitation:

AmeriDebt, Inc.
Debticated Consumer Counseling, Inc.
CrediCure, Inc.
A Better Way Credit Counseling, Inc.
Neway, Inc.
Mason Credit Counseling, Inc.
Debtscape, Inc.
Nexum Credit Counseling, Inc.
PreActiv, Inc.
The Credit Network, Inc.
Visual Credit Counseling, Inc..

In the proposed Chase Bank Debt Management Plan & Credit Counseling Agency class action settlement, Chase has agreed to contribute $4,900,000 to a “Settlement Fund” for the benefit of Settlement Class Members. This money will be used:

(1) to pay valid claims of Settlement Class Members;
(2) to pay the costs of notice and administering the Settlement;
(3) to reimburse Plaintiffs for their attorneys’ fees and litigation expenses;
(4) to pay service awards to Plaintiffs; and
(5) if any funds remain after paying the foregoing, to make equal donations to the Alexander Law Center at Santa Clara University Law School and the National Board for Professional Teaching Standards.

The Court will hold a “Final Fairness Hearing” on November 7, 2011, at 1:30 P.M. at the United States District Court for the Central District of California, Southern Division, 411 West Fourth Street, Courtroom 9B, Santa Ana, CA 92701, to hear any objections and to consider whether to give final approval to the Chase Bank Debt Management Plan & Credit Counseling Agency Settlement.

For more information on the Chase Bank Debt Management Plan & Credit Counseling Agency class action settlement, visit the Abat et al. v. Chase Bank, USA class action settlement case website:

www.abatsettlementclass.com

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