CMG Risk Alert: Settlement Message on Collection Notices

CUNA Mutual Group (CMG) issued a Risk Alert that shared information on a settlement in a United States District Court, District of Massachusetts ruling against American Honda Finance, Corp. that resulted in approximately $1.9 million for class members and attorney fees along with $20 million of eliminated deficiency loan balances.

CMG said the settlement serves as a strong reminder that credit unions in Massachusetts and other states should work with attorneys to ensure Notices of Intent to Sell Collateral language, and calculations/disclosure within Deficiency Notices are accurate.

CMG members, to learn more about the risks surrounding collection notices and mitigation tips including wording requirements, review the Collection Letters Risk Overview.

To read CMG’s full Risk Alert click here.