People of the State of California ex rel. Dennis Herrera v. Check 'n Go of California, Inc., et al.
San Francisco Superior Court Case No. CGC-07-462779

Frequently Asked Questions

Following is a list of frequently asked questions about this Case. To view the answer to a question, please click on the question from the list below.

1. Why did I receive notice of this Settlement Distribution?

You received this Notice because you were identified as someone who obtained a four-month installment loan between November 2006 and June 2008 through one or more of the following websites: (1) www.checkngo.com, (2) www.ilp.fbdel.com, or (3) www.commandloans.com, and that you paid interest, fees, or finance charges that exceeded the amount of unpaid principal for the loan(s).

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2. What is this lawsuit about?

The City Attorney of San Francisco ("the People") filed a lawsuit against Check 'n Go of California, Inc. d/b/a Check 'n Go; Southwestern & Pacific Specialty Finance, Inc. d/b/a Check 'n Go; Avante TelAdvance, Inc. d/b/a Check 'n Go Online ("the Check 'n Go Defendants") , and the First Bank of Delaware. The People alleged that the Check 'n Go Defendants offered to California consumers installment loans with interest rates that exceeded the limits set by California law.

The Check 'n Go Defendants deny the People's claims.

In order to eliminate the cost, burden and uncertainty of litigation and trial, and without admission by the Check 'n Go Defendants of the truth or accuracy of any allegations made, the parties have agreed to settle all of the People's claims. As part of Settlement, the Check 'n Go Defendants agree to pay to California consumers who took out Challenged ILP Loans at least $2.2 million, but not more than $4.3 million, of the interest, fees, and finance charges they paid on such loans.

For more information, you can read the People's First Amended Complaint, Defendant's Answer to the First Amended Complaint, and the Settlement Agreement and Release.

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3. What are the People's claims?

The People allege that the Check 'n Go Defendants offered installment loans to California consumers with interest rates that exceeded the limits set by California law.

In the lawsuit, the People claim that the Check 'n Go Defendants, and not the purported loan funder First Bank of Delaware ("FBD"), was the true lender of the installment loans and that FBD aided and abetted in the alleged violations of California law.

More information is available in the People's First Amended Complaint.

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4. How do the Defendants answer?

The Check 'n Go Defendants deny the People's allegations in the lawsuit and deny that they have any liability to the People arising from the lawsuit.

Specifically, the Check 'n Go Defendants assert that First Bank of Delaware ("FBD"), a state-chartered, FDIC insured financial institution, made the loans challenged in this lawsuit and that Avante TelAdvance, Inc. was the marketer and servicer of the loans. 

More information on the Defendant's position can be found in the Defendant's Answer to the Complaint.

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5. Has the Court decided who is right?

The Court has not decided who is right, but the Court has approved a Settlement Agreement executed by the Parties after settlement negotiations and mediation. The Court has not decided—and the parties have not admitted—anything about the truth or accuracy of any allegations made in the Parties' pleadings. The parties have agreed to settle all of the People's claims in order to eliminate the cost, burden and uncertainty of litigation and trial.

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6. What do I need to do to get a payment?

If you are eligible to file a claim, you must submit:

(1) a completed, signed claim form; and
(2) a copy of one of the following forms of identification

  • any government-issued identification card, including a current driver's license, passport, voter registration card, birth certificate, military ID, or immigration documents
  • student or school identification card bearing picture and name
  • employee identification card bearing picture and name
  • public housing identification card with address
  • a telephone, water, electricity, garbage, cable television or other utility bill showing name and current address
  • bank statement (showing name and current address)
  • school tuition bill (showing name and current address)
  • medical insurance card

By mail postmarked no later than March 28, 2013 to:

CG Loans Claims Administrator
c/o Dahl Administration
PO Box 3614
Minneapolis, MN 55403-0614

 

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7. What types of identification can I submit?

To verify your identity, you must provide the last 4-digits of your Social Security number, your date of birth, and a copy of any one of the following forms of identification:

  • any government-issued identification card, including a current driver's license, passport, voter registration card, birth certificate, military ID, or immigration documents
  • student or school identification card bearing picture and name
  • employee identification card bearing picture and name
  • public housing identification card with address
  • a telephone, water, electricity, garbage, cable television or other utility bill showing name and current address
  • bank statement (showing name and current address)
  • school tuition bill (showing name and current address)
  • medical insurance card

Send a copy of the identification.  Do not send original identification documents.

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8. What payment amount will I receive?

In order to eligible for a payment, you must file a claim form with an acceptable form of identification by March 28, 2013.  Claims will be reviewed and verified.  If your claim is timely and verified, you will be eligible for a payment.

Exact payment amounts will vary.  The lowest possible amount will be $20 and the maximum amount will be $4,675.  The exact payment amount for which you may be eligible will depend on your individual loan history and the number of eligible claims received.

The payment due to eligible claimants will be calculated as follows, based on the Check 'n Go Defendants' records:

A) A Base Amount will be calculated by:

      1. determining the total amount of interest, fees, and finance charges that were    paid by the claimant in connection with a Challenged ILP Loan(s); and
      2. subtracting from this total the amount of (i) any unpaid principal owed by the claimant on any Challenged ILP Loan and (ii) any unpaid principal on any other loan obtained by the claimant from Check 'n Go.
      3. The dollar amount resulting from subtracting unpaid principal [item (2)] from total interest, fees, and finance charges paid [item (1)] is the "Base Amount."

B) Except as provided in Paragraph C below, the Payment Amount to be paid to each eligible claimant will be equal to 68.5% of that claimant's Base Amount.  Claimants eligible for a Payment Amount of less than $20 will not receive any payment.

C) If the combined total of all Payment Amounts calculated pursuant to the above formula is greater than $4.3 million, then each eligible claimant's Payment Amount will be reduced proportionately to bring the combined total of all Payment Amounts to $4.3 million.

 

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9. Which consumers are included?

Persons who lived in California and, between November 2006 and June 2008, borrowed one or more unsecured installment loans offered to California residents, through any of the following websites (1) www.checkngo.com, (2) www.ilp.fbdel.com, and/or (3) www.commandloans.com, where the loan had a four-month term and the borrower paid interest, fees, or finance charges in connection with the loan(s) that exceeds the amount of unpaid principal for the loan(s), may be included in this Settlement.

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10. How will I know if I am included?

If you received a Notice in the mail about this settlement, you were identified by Check 'n Go as an eligible consumer.

If you did not receive a Notice in the mail, but believe you are eligible to file a claim, you may print a Claim Form and submit it to the Claims Administrator for verification.

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11. When will payments be sent?

Payments will be sent to all claimants who file valid, timely Claims no later than July 31, 2013.

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12. What happens if I do nothing at all?

If you do nothing at all, you will not receive any payment to which you may have been entitled under the terms of this Settlement.

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13. Do I have a lawyer in this case?

Eligible California consumers are being represented by San Francisco City Attorney Dennis J. Herrera in this lawsuit.  You may contact the San Francisco City Attorney at 1-855-581-2350 (toll free) or go to www.caloanrefund.org.

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14. How can I get more information?

If you have questions that were not answered by the information provided on this website, you may call the automated Helpline at 1-888-781-6246 or contact the claims administrator by mail at CG Loans Claims Administrator, c/o Dahl Administration, PO Box 3614, Minneapolis, MN 55403-0614 or by email at mail@CGCASettlement.com

You may also contact the San Francisco City Attorney at 1-855-581-2350 (toll free) or go to www.caloanrefund.org.

Do not contact the Check 'n Go Defendants or the Court.

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