vesper wrote:
Out of curiosity what was the suit against Triad about? My loan was thru them but I paid it off in 06. I sent them a GW to get the late payments I had off of my CR (i lost my job at that point).....they denied me of the request.
This is a OCR document, so everything may not make sense, but this is some snippets from letter I received before the class action suit.
____________________________________________________
TRIAD CAPITAL CORPORATION aka
TRIAD FINANCIAL CORPORATION,
Plaintiff/Counter-Defendant,
v.
MADDEN and WILLIAMS,
Individually and on behalf of aClass of Consumers similarly situated,
Defendants/Counter-Plaintiffs.
IN THE CIRCUIT COURT
FOR BALTIMORE CITY, MARYLAND
(CIVIL DIVISION)
Case No. 24-C-06006310
NOTICE OF PENDENCY OF CLASS ACTION, PROPOSED SETTLEMENT. AND HEARING
TO: ALL CONSUMERS WHOSE VEHICLES WERE REPOSSESSED AND SOLD AT PRIVATE SALE BY TRIAD FROM AUGUST 25,2002 THROUGH'
AND INCLUDING AUGUST 24, 2006, IN CONNECTION WITH AN INSTALLMENT SALE CONTRACT GOVERNED BY CLEC, WHERE THE CONSUMER
RESIDED IN THE STATE OF MARYLAND AT THE TIME OF REPOSSESSION.
PLEASE READ THIS NOTICE CAREFULLYIN ITS ENTIRETYYOUR RIGHTS MAYBE AFFECTED BY THE
, SETTLEMENT OF THIS LAWSUIT NOWPENDING IN THIS COURT
NOTICE IS HEREBY GIVEN pursuant to RULE 2-231 of the MARYLAND RULES and an Order of the Circuit Court of Baltimore City, to the
Class:-
All individuals whose vehicles were repossessed and sold at Private Sale by Triad during the Class Period, in connection
with an installment sale contract governed by CLEC, where the consumer resided in the State of Maryland at the time of
repossession.
The Settlement Class excludes: (a) any individual who now is, or ever has been an officer of Triad, as well as the spouses,
parents, siblings and children of all such individuals; (b) any individual who was not a resident of the ,State of Maryland as
of the date that his or her vehicle was repossessed; (c) any individual against whom Triad obtained a final jUdgment on his
or her Installment Contract, on or before August 24, 2006; (d) any individual who was granted a discharge pursuant to the
United States Bankruptcy Code or state receivership laws after the date of his or her Installment Contract; and (e) any
individual otherwise obligated on an Installment Contract that was satisfied on or before February 24, 2006.
This notice is sent to you in the belief that you are amember of the above-defined Class.
This case is a Class action brought on behalf of a Class of consumers against TRIAD, who allegedly was engaged in practices that may have affected
your rights when your vehicle was repossessed, This is not alawsuit against you,
I. THE LAWSUIT
This proposed Settlement involves a lawsuit - Triad Capital Corporation v. Madden, et al., Circuit Court of Baltimore City, Civil No. 24-C-06006310, The
lawsuit was brought as aproposed class action,
The Count~rclaim alleges that TRIAD acquired installment sale contracts for the purchases of automobiles from Maryland automobile dealers, in which the
contract contained an election of Maryland's Credit Grantor Closed End Credit Provisions, Subtitle 10 of Title 12 of the Commercial Code ('CLEC'). The
Complaint alleges further that Triad effected the repossession sales through form notices of the pending sale and, thereafter, form notices of the claimed
deficiency, that failed to comply with all of the requirements of CLEC. Based on these deficiencies, Defendants/Counter-Plaintiffs asserted five claims for
relief: (1) CLEC; (2) breach of contract; (3) declaratory and injunctive relief; (4) restitution and unjust enrichment; and (5) violation of Maryland's Consumer
Protection Act, MD. CODE ANN., COMM. LAW § 13-101, et seq.
TRIAD has denied all of Defendant/Counter-Plaintiffs' claims. TRIAD also denied any wrongdoing or liability to Defendants/Counter-Plaintiffs or to any
putative Class Members. TRIAD coritemds that Defendant/Counter-Plaintiffs' claims have no merit and that they would prevail in the lawsuit.
As aresult of afull-day mediation session and further arms-length negotiations, asettlement was reached. The settlement requires approval by the Court,
and this Notice advises you of the proposed settlement so that you can consider your legal rights,
The parties arrived at this settlement before any of the claims or defenses were tried on the merits and before the Court determined class certification.
Accordingly, there has been no finding that the Plaintiff/Counter-Defendant violated any law in their conduct toward Defendants/Counter-Plaintiffs or other
Class Members.
Counsel for the Class have investigated the facts and. the applicable law regarding the matters raised in the lawsuit. The issues before the Court are
complex and there is uncertainty as to the outcome of the lawsuit. Class Counsel believe that the 'c1aims raised in the lawsuit have merit, but recognize that
there is a risk that no Class would be certified, leaving the Class members no means for recovery without filing their own separate lawsuits. Therefore, the
Defendants/Counter-Plaintiffs, on behalf of all others similarly situated, have entered into a Settlement Agreement with TRIAD made as of November 7,2007,
(the 'Settlement Agreement"), which, if approved by the Court, will fully and finally resolve the claims asserted by the Defendants/Counter-Plaintiffs against
TRIAD, on behalf of themselves and anyone else in the Settlement Class. THIS NOTICE AFFECTS YOU BECAUSE IT IS BELIEVED THAT YOU ARE A
MEMBER OF THE SETILEMENT CLASS.
II. CLASS ACTION
The parties have agreed and the Court has ruled that. for settlement purposes only, this lawsuit may be maintained as aClass Action, subject to final and
permanent approval at the conclusion of the settlement process. If this proposed settlement is not finally approved, or is withdrawn at any time, for reasons
detailed in the Settlement Agreement, the parties have agreed to withdraw their stipulation for conditional class certification and to return the lawsuit to the same status as before the Settlement Agreement was signed.
-1 .
IV. THE PROPOSED SETTLEMENT
On November 7, 2007, Defendants/Counter-Plaintiffs, and TRIAD, through their respective counsel, entered into a Settlement Agreement that, if
approved, will result in the dismissal with prejudice and release of all claims that were or could have been asserted by Defendants/Counter-Plaintiffs or any
other Class Member against Defendant in connection with their automobile installment sale contracts. The Settlement Agreement is subject to final approval
by the Court. It contains all the terms of the settlement and is available for your inspection at the Office of the Clerk, Circuit Court for Baltimore City, 100 North
Calvert Street, Baltimore, Maryland 21202, during normal business hours.
In summary, the Settlement Agreement provides for the following:
Certification of Settlement Class
1. The Court has certified preliminarily, for settlement, a Class which is defined generally as:
All individuals whose vehicles were repossessed and sold at Private $ale by Triad during the Class Period, .in connection with an installment sale
contract governed by CLEC, where the consumer resided in the State of Maryland at the time of repossession. .
The Settlement Class excludes: (a) any individual who now is, or ever has been an officer of Triad, as well as the spouses, parents, siblings and children
of all such individuals; (b) any individual who was not a resident of the State of Maryland as of the date that his or her vehicle was repossessed; (c) any
individual against whom Triad obtained a final judgment on his or her Installment Contract, on or before August 24, 2006; (d) any individual who was
granted a discharge pursuant to the United States Bankruptcy Code or state receivership laws after the date of his or her Installment Contract; and (e)
any individual otherwise obligated on an Installment Contract that was satisfied on or before February 24, 2006.
Equitable Relief
2. TRIAD has declared that they no longer send form notices that do not comply with the requirements of CLEC and represented that they will not use such
notices in the future. TRIAD has also waived all outstanding balances and/or deficiencies owed in connection with the Class Members' CLEC contracts
and will dismiss any pending lawsuits based on such deficiencies or balances. The Settlement Agreement also requires the Defendants to request that
the credit reporting agencies remove the trade line relating to each Class Member's CLEC contract from the Class Member's creditreport.
Settlement Fund
3. The Settlement Agreement also requires Defendants to pay into a Settlement Fund for the benefit of the Class the sum of $1 ,700,00, plus such additional
amounts after compilation of the Class List as may be necessary to make the payments set forth below. If the settlement is approved, the Settlement
Fund will provide monetary recovery to each Class member who made payments in excess of the principal amount stated in their installment sale
contract.
4. Class members eligible for monetary recovery whose cars were repossessed after making more than 24 monthly payments from the inception of their
installment sales contracts will have the option of receiving a full lump ~um cash payment, or applying for a reduced-rate auto loan through TRIAD's
Roadloans online program, along with a smaller cash payment. Once the settlement receives final approval from the Court, class members eligible for
the election will have 6 months to elect either the Gash option or the loan option.
a. Cash Option
Those class members electing the cash option will receive 100% of the amount paid in excess of the amount financed after the repossession sale date,
and 55% of the amount paid in excess of the amount financed before or on the repossession sale date.
b. Loan Option
Those class members electing the loan option may apply for up to a six-year loan from Roadloans for either a purchase or refinance of an automobile.
To apply, they will follow the standard application procedure on the Roadloans website. If they are not approved for a loan, they will automatically receive the amount to which they would have been entitled under the cash option. If they are approved for a loan, the rate of interest on the loan will be reduced by 5 percentage points (i.e. 16% to 11%) if their cars were repossessed after making more than 36 monthly payments from the inception of their installment sale contracts, or 4 percentage points if their cars were repossessed after making between 24 and 36 monthly payments from the inception of their installment sale contracts. For either category of class members, the reduced rate of interest will not go below 9.5%. Additionally, when an eligible Class Member is approved for a loan, he or she will also receive a cash payment of 40% of the amount paid in excess of the Amount Financed after the repossession sale date.
V. REASONS FOR SETTLEMENT
Defendants/Counter-Plaintiffs on the one hand, and TRIAD on the other hand, agreed on all of the terms of the proposed settlement through extensive
arms-length negotiations between Class Counsel and counsel for Defendant. Defendants/Counter-Plaintiffs have entered into the proposed settlement
after weighing the benefits of the settlement against the probabilities of success or failure in the lawsuit and against the delays that would be likely if the
lawsuit proceeded to trial, and after trial, to appeal.
Defendants/Counter-Plaintiffs and Class Counsel have concluded that the proposed settlement is fair, reasonable and adequate. It provides substantial
benefits to the Class; resolves complex issues without prolonged litigation; provides the Class with significant individual and aggregate benefits; and is in
the best interests of the Class.
Although TRIAD denies any wrongdoing, and any liability whatsoever, TRIAD believes that it is in its best interest to settle this lawsuit on the terms set
forth in the Settlement Agreement in order to avoid further expense and inconvenience in connection with the lawsuit.
