Recently I wrote about the class action lawsuit against Navy Federal Credit Union entitled Driscoll v. Navy Federal Credit Union. It’s a class action before the Maryland District Court, case number 1:13-cv-00137-BPG. And when it was announced that a settlement was being proposed, whereby Navy Federal Credit Union would pay $650,000 to settle the case, I posted an article titled Navy Federal Credit Union wants to settle Class Action Lawsuit.
The subject of these articles is highly relevant to the practice of bankruptcy, debt collection defense, and consumer protection. Many of our clients complain of injustices, unfairness, contract breaches, and unlawful practices against them by their banks and credit unions. This Driscoll lawsuit is only one example of such activity, and a rare occurrence where a financial institution is held accountable. Although, if you read on regarding the terms of the settlement, you may dispute whether Navy Federal was actually held liable, punished, or made to compensate consumers for what they did.
At least one class member says no, and has filed an appeal.
The settlement was approved by order of the District Court, judgment entered, and case dismissed on October 29, 2013. Less than a week later the class member filed an appeal.
It’s also important to note that said class member previously objected to the proposed settlement, before it was approved. The objecting member called the settlement “..not fair, reasonable and adequate.” And in regards to the settlement only providing free credit reports to class members, he argued that the “…class receives no benefit under the proposed settlement. All class members can get the exact same benefit for free by going to freecreditreport.com.”
Additional arguments against the settlement were made in regards to attorney fees and some other details of the settlement. The Court disagreed with the arguments made by the objecting class member, and approved the settlement despite the objections.
Read through the member’s Objection to Class Settlement, and let me hear your thoughts in the comments below. Members of the class only received a free credit report as compensation, something the objecting member correctly stated can be obtained for free elsewhere. Do you think that’s adequate?