In a recent legal development, the Circuit Court of Lonoke County, Arkansas, has granted preliminary approval for a class action settlement involving Bill Fitts Auto Sales, Inc. and Bill Fitts Finance, Inc. This case, brought forward by plaintiffs Samantha Tullos and Leeonena Louise Anderson, alleges that the defendants issued deficiency collection notices that were not compliant with Arkansas’s Uniform Commercial Code requirements.

The plaintiffs represent a class of individuals who, between October 5, 2019, and October 4, 2022, had a Retail Installment Contract (RIC) held by either of the defendants, experienced repossession of personal property, and received deficiency collection notices. The class consists of approximately 28 members.

Under the terms of the settlement, the defendants have agreed to waive approximately $150,000 in deficiencies, including interest, for all class members. Additionally, eligible class members will receive a full waiver of any alleged debt related to their retail installment contracts with the defendants and a share of $3,000. The agreement also provides that class counsel may apply for attorney’s fees and costs not to exceed $30,000, as well as $400 incentive awards for the class representatives, all of which will be paid from the settlement fund.

Key aspects of the order include:

• Preliminary Approval: The Court has granted preliminary approval, recognizing that the settlement terms are fair and reasonable.
• Class Certification for Settlement Purposes: The Court has certified a settlement class, allowing the plaintiffs to represent all eligible individuals as defined by the agreement.
• Appointment of Class Representatives and Counsel: Samantha Tullos and Leeonena Louise Anderson have been appointed as class representatives, with attorneys Corey D. McGaha and Todd M. Turner designated as class counsel.
• Notice to Class Members: Defendants are required to provide contact information for all class members to the plaintiffs’ counsel, and notice will be mailed to class members within 20 days of the order.

A final approval hearing is scheduled for early 2025, at which time the Court will decide whether to grant final approval of the settlement. Class members will have the opportunity to opt-out, object, or intervene before the final decision is made.

This case highlights the importance of compliance with consumer protection laws and the role of class action litigation in securing relief for individuals who may have experienced similar grievances. For more information on class action litigation and consumer protection, contact Corey D. McGaha PLLC.