Plaintiff Ruth Roberson had two claims.  The Court examined the first claim and ruled that Associates broke its written loan contract promise when it charged interest on its loan origination fee.  The Court examined the second one and ruled that Associates did not violate the Kansas Uniform Consumer Credit Code when it charged interest on the loan origination fees.

There are 4,952 Class Members with Breach of Contract claims. Some members have more than one claim because they had more than one loan with the Associates.  1,454 class members had Uniform Consumer Credit Code claims.  Again, because some members had more than one loan, they had more than one claim. The Court held that Associates did not violate the Kansas Uniform Consumer Credit Code.  Therefore, those Class Members who had only Kansas Uniform Consumer Credit code claims are not eligible to receive any settlement benefit. That leaves the 4,952 Breach of Contract class members who will receive settlement benefits based upon 5,998 eligible loans with Breach of Contract claims. 

Judge Peggy McGraw, of the Circuit Court of Jackson County, Kansas City, Missouri, is in charge of this class action.  In a class action, one or more people called Class Representatives (in this case Ruth Roberson), sue on behalf of all people who have similar claims.  All these people are Class Members.  Once the court certifies the class, the Court then rules on the claims for all Class Members, except those claims of Class Members who have already excluded themselves from the Class. 

The Court did not decide damages in favor of Plaintiff or Defendants.  The Plaintiff thought that if she won final judgment, she would win more than ten million dollars.  The Defendants thought that Plaintiff would not have won anything, but that if she did, she would win no more than six million, seventy-five thousand dollars. But there was no trial.  Instead, both sides agreed to a settlement.  That way, both sides avoided the additional time (perhaps years) of further litigation and appeals.  Both sides compromised their claims. The successful Class Members now will get their money back in a few months.  The Plaintiff and Class Counsel think the settlement is the best that can be achieved for all Class Members.

Associates has agreed to pay ten million dollars.  This money is to be divided between all Entitled Class Members. Before distributing this money to the Entitled Class Members, all Court approved attorneys' fees and expenses, payment to the Class Representative and costs of administering the class settlement will first have to be deducted.

Your share of the common fund will depend on how much interest you have paid on the Loan Origination Fee.  Your settlement payment will be based upon a formula.  The formula is:  the interest you paid in proportion to interest paid by all participating Entitled Class Members multiplied by the settlement fund, after first deducting from the settlement fund Court approved attorneys fees and expenses, payment to the Class Representative and costs of administering the class settlement. 

If you are qualified to receive a settlement payment, you do not need do anything. 

You do not need to file a claim. You are presumed to be qualified unless you recently received a Notice of Class Settlement that stated in bold print on the first page that you will not be receiving any settlement benefit.  If you have moved from the address on your Notice of Class Settlement, you can assist the Class Administrator, and assure prompt payment to you, by contacting the Class Administrator in writing with your new address.  You may contact the Class Administrator at this address:

            Roberson v. Associates Class Administrator

            c/o Rust Consulting, Inc.

            PO Box 62

            Minneapolis, Minnesota 55440-0062

The Court will be holding a final hearing on November 21, 2005, at 1:30 P.M. to decide whether to finally approve the settlement.  If Judge McGraw approves the settlement and there are no appeals, you should receive payment within 90 days from the final hearing.

You have ninety days to cash your check from the issuance date of the check.  If you fail to cash your check within these 90 days, the Class Administrator shall not be required to honor it or reissue to you another check.  Therefore, you should cash your check immediately upon receiving it.

The Court appointed Class Counsel to represent you and other Class Members.  You will not be directly charged for these lawyers.  Their fees will be paid from the ten million dollar settlement fund.  If you want to be represented at the final hearing by your own lawyer, you may hire one at your own expense.

Class Counsel have asked the Court to approve attorney fees of one-third of the ten million dollar common fund.  These fees will pay the four law firms which have worked on this case for over five and one-half years.  These law firms investigated the facts, investigated the Associates, litigated the case, and negotiated the Settlement over the course of more than five and one-half years.  These law firms have also incurred more than $130,000 in costs out of their own pockets. The Defendants do not oppose these fees and costs.

You do not need to hire an attorney or appear in Court to receive any settlement payment.  If you are eligible to receive a settlement payment, one will be mailed to your last known address.  All you have to do is cash the check within 90 days.

You can object to the settlement if you don't like any part of it. You can give reasons why you think the Court should not approve it.  The Court will consider your views.  To object, you must send a letter saying that you object to the proposed settlement of Ruth Roberson v. Associates Financial Services Company of Kansas, Case File No. 00-CV-211760-01.  Be sure to include your name, address, telephone number, your signature, and the reasons you object to the settlement.  Mail the objection to these four different places postmarked no later than November 14, 2005.

The Court will hold a Fairness Hearing at 1:30 P.M. on November 21, 2005 at the Circuit Court of Jackson County Courthouse, Sixth Floor, Division 8, 415 East 12^th Street, Kansas City, MO 64106.  At this hearing the Court will make its final decision whether the Settlement is fair, reasonable and adequate.  If there are objections, the Court will consider them.  Judge McGraw will listen to people who have asked to speak at the hearing.  The Court will also decide how much to pay to Class Counsel. 

You do not need to come to the hearing. Class Counsel will answer questions Judge McGraw may have.  But you are welcome to come at your own expense.  If you send an objection, you don't have to come to Court to talk about it.  As long as you mailed your written objection on time, the Court will consider it.  You may also pay your own lawyer to attend, but it's not necessary.

No, it is too late to exclude yourself from this lawsuit.  In December of 2003, a Notice of Pending Class Action was mailed to all putative Class Members.  This Notice included a notice of all Class Members' right to be excluded from the lawsuit by filing a written Statement of Exclusion on or before February 13, 2004.  If you did not file a written Statement of Exclusion on or before February 13, 2004, it is too late to exclude yourself now.

You may ask the Court for permission to speak at the Fairness Hearing.  To do so, you must send a letter saying that it is your "Notice of Intention to Appear in Ruth Roberson, et al. v. Associates Financial Services Company of Kansas, Inc., et al., Court File 00-CV-211760-01."  Be sure to include your name, address, telephone number, and your signature.  Your Notice of Intention to Appear must be postmarked no later than November 14, 2005, and be sent to the Clerk of the Court, Class Counsel, and Defense Counsel at the three addresses listed in the Notice of Class Settlement you received.

The Notice you received summarizes the proposed settlement.  More details are in the Settlement Agreement.  You can get a copy of the Settlement Agreement from the Clerk of the Circuit Court of Jackson County, Kansas City, MO or by writing to Crowder, Bedor & Paulson, LLP, 555 West 7^th Street, Suite 201, St. Paul, MN 55102 or by visiting the website at www.crowderbedor.com.

If you do nothing and you are a Class Member eligible to receive settlement benefits, you will receive a check in the mail.  If you are a Class Member but not eligible to receive settlement benefits, you are already bound by the Settlement.  You will receive no money.

Some Class Members may have received two Notices because they had more than one loan with Associates Financial Services Company of Kansas, Inc., or Associates Financial Services Company, Inc.  The Court may have determined that Associates broke its written loan contract promise when it charged interest on its loan origination fee in one loan. But with respect to the second loan, the Court may have determined that the written loan contract did not contain a similar promise and therefore no settlement benefits are owed for this second loan.