LISA TAGGART, et al. v EAGLE ONE 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 Philadelphia County, Pennsylvania, and the case is known as Lisa Taggart, individually and on behalf of all others similarly situated v. Eagle One Federal Credit Union, No. 201900792.  The person suing is Lisa Taggart, the Plaintiff (also called “Class Representative”) and the company being sued, Eagle One Federal Credit Union, is called the Defendant, or “Eagle One.”

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

Eagle One’s records reflect that you and any co-borrower on your vehicle loan were sent one or more notices from Eagle One following the repossession of your vehicle between August 11, 2015 through February 1, 2022.  Eagle One’s conduct post-repossession, including its use of these notices, forms the basis for this lawsuit.

The lawsuit claims that Eagle One violated Pennsylvania’s Uniform Commercial Code by failing to send its borrowers in Pennsylvania (a) proper notice of disposition of collateral (“Repossession Notice”) after repossession of their vehicle(s), and (b) proper explanation of calculation of deficiency (“Deficiency Notice”) after the sale of the vehicle(s).  

Specifically, Plaintiff asserts on behalf of herself and a class of borrowers that the Repossession Notice sent by Eagle One misrepresents the borrower’s right to redeem the vehicle and fails to state the method of intended disposition.  Plaintiff also asserts on behalf of herself and a class of borrowers that the Deficiency Notice fails to provide a proper explanation of how Eagle One calculated a deficiency balance.

Eagle One denies that its disclosures violated any law, and Eagle One asserts that it satisfied all of the legal requirements as to its notices.  Eagle One asserts other defenses.  Eagle One further contends that many of the members of the Class owe Eagle One 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 Lisa Taggart), 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.  Eagle One 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.  Eagle One 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, Eagle One’s records reflect that you are part of the Class.  The Court has preliminarily certified a Class, which includes borrowers on secured auto loans who were sent certain notices between August 11, 2015 through February 1, 2022 after their vehicle was repossessed.

·         Cash Component: 

o   Eagle One has agreed to create a Settlement Fund of $300,000.00.  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.  

o   The Net Fund will be distributed to you and the other members of the Class in proportionate to the amount of statutory damages you may claim, which is different for each Class Member.  There are approximately 41 secured obligations in the Class.  Your approximate payment was in the notice sent to you.

o   If after the first distribution of checks to the Classes more than $30,000 remains in the Net Fund (from uncashed or undistributable checks), there will be a second distribution of checks to the Class.  A balance remaining after the second distribution will be paid to cy pres beneficiaries, Pennsylvania Interest on Lawyers Trust Account (“IOLTA”) and Pennsylvania Legal Aid Network (“PLAN”) for consumer uses.

Credit Reporting Relief:  Unless you reinstated your loan, Eagle One will request that the credit reporting agencies update your credit report to remove any reference to the Eagle One auto loan contract.  Details about how and when this will be done, and limits on Eagle One’s obligation to provide credit reporting relief are spelled out further in the Settlement Agreement.

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.

No. You do not need to do anything further to remain in the Class.  You will get a payment automatically, assuming court approval of the Settlement. You will also get any credit reporting benefit automatically unless you reinstated your auto loan.

The Court will hold a hearing on June 27, 2023, at 2:00 P.M. via Zoom using the link https://zoom.us/j/4043810373, 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. Resolving an appeal can take time, often well more than a year.  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 Eagle One 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” which describes exactly the legal claims that you give up if you remain in the Class. The specific language of the release is set forth in the Settlement Agreement, which can be found in the Important Court Documents section of this website.

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 Lisa Taggart, individually and on behalf of all others similarly situated v. Eagle One Federal Credit Union, August Term, No. 00965.  Be sure to include your name, address, email (if available), telephone number and your signature.  Mail your exclusion request postmarked no later than May 22, 2023, to all of three different addresses below.

No.  Unless you exclude yourself, you give up any right to sue Eagle One for the claims that this settlement resolves.  If you have a pending lawsuit, speak to your lawyer in that case immediately.  You must exclude yourself from this Class to continue your own lawsuit.

No.  If you exclude yourself, you will not receive any money from this lawsuit or settlement, credit report deletion, 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 one at your own expense.

As part of the class settlement, Plaintiff will ask the court to approve a $10,000 service award for her 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 $120,000 for Class Counsel fees and 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 2021.  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 send a letter to the Settlement Administrator and to counsel at the three different addresses listed in section 11 above, on or before May 22, 2023, saying that you object to the settlement in Lisa Taggart, individually and on behalf of all others similarly situated v. Eagle One Federal Credit Union, August Term 2021, No. 00965, and the letter must include your name, address, email address (if available), telephone number, your signature, and the reasons you object to the settlement.

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 Fairness Hearing on July 25, 2023 at 2:00 P.M. via Zoom using the link via Zoom (https://zoom.us/j/4043810373.  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.

If you file and serve a timely, written objection pursuant to the terms of paragraph 16 of this Notice, you may appear and be heard at the Final Approval Hearing either in person or through counsel retained at your own expense.  If you hire an attorney to represent you, the attorney must file a notice of appearance with the Office of Judicial Records and deliver a copy of that notice to defendant’s counsel and to Class Counsel.

f you do not exclude yourself and the Court finally approves the settlement, you will receive a settlement payment(s) 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 Office of Judicial Records, City Hall, Philadelphia, PA.  These documents will also appear in the Important Court Documents section of this website.  

You may also call or write to the following:

Class Counsel
FLITTER MILZ, P.C.
450 N. Narberth Avenue, Suite 101
Narberth, PA 19072
888-668-1225

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