Hughes Federal Credit Union Repossession Notification Settlement
Case Overview
Hughes Federal Credit Union (HFCU), a financial institution in Arizona, reached a $7 million class action settlement. This action addresses claims that the credit union violated Arizona law by not giving proper notification to borrowers whose vehicles were repossessed. The settlement covers individuals who financed a motor vehicle through HFCU, whose vehicle was repossessed by HFCU, and who resided in Arizona during the repossession period between May 18, 2019, and August 4, 2023.
The plaintiffs alleged that HFCU failed to issue the required repossession notification letters to Arizona borrowers after repossessing their vehicles, which notices are mandated by Arizona law to inform borrowers of their rights. While HFCU has not admitted any wrongdoing, the settlement provides class members with a cash payment estimated to be around 14.69% of full statutory damages, with an average payment of $1,067. Furthermore, the settlement resolves any deficiency balances, which HFCU allegedly holds around $25.6 million in.
Class members who choose not to participate in the settlement will not have their deficiency balances resolved. In addition to the cash payout, the settlement offers non-monetary relief by having HFCU request that credit reporting agencies delete the trade line for the secured vehicle obligations and deficiencies from the members' credit files within 60 days of the settlement's effective date. The deadline for exclusion and objection is November 20, 2026, and the final approval hearing is set for December 7, 2026. No claim form is necessary to receive benefits, as those who do not opt out will automatically receive the settlement benefits.
Who May Qualify
Individuals who financed the purchase of a motor vehicle through Hughes Federal Credit Union, whose vehicle was repossessed by HFCU, and who had an Arizona address at the time of repossession between May 18, 2019, and August 4, 2023.
Frequently Asked Questions
Who is eligible for this settlement?
The settlement benefits individuals who financed a motor vehicle through Hughes Federal Credit Union, whose vehicle was repossessed by HFCU, and who had an Arizona address at the time of repossession between May 18, 2019, and August 4, 2023.
What are the benefits of the settlement?
Class members can receive a cash payment based on their financed amount and associated finance charges, which is estimated to be around 14.69% of full statutory damages. The settlement also resolves deficiency balances and provides credit reporting relief.
What is the deadline for class members to act?
The deadline for exclusion and objection is November 20, 2026. Class members who do not exclude themselves will automatically receive the settlement benefits.
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