Hager v. Check Into Cash of North Carolina, Inc.
Home Case Documents Change of Address Contact Us


Welcome to the Official Website for Hager v. Check Into Cash of North Carolina, Inc. case no. 04-CVS-2859 Superior Court of New Hanover County, in Wilmington, North Carolina

Settlement Update

On October 17, 2011 the Claims Administrator began mailing checks to class members who paid fees to Check Into Cash of North Carolina, Inc. stores on or after September 1, 2001. The check amounts vary depending on the amount of fees paid by individual class members. You do not need to speak to a representative to validate the authenticity of this check.

The second and final distribution in this case will occur toward the end of May, 2012. The second and final distribution will include funds from check that were not cashed by class members in the first distribution.


If you would like to update your address with the Claims Administrator or if you need to request your check to be reissued please

Email info@NCCheckIntoCashSettlement.com

Or write to

Hager v. Check Into Cash of North Carolina, Inc., c/o Gilardi & Co., P.O. Box 808054, Petaluma, CA 94975-8054

Any reissue requests must include your first and last name, address, telephone number, last 4 digits of your social security number and a statement saying you need your check to be reissued. If the payee on the check is deceased and you cannot cash the check, you will need to provide verification of the death and documentation showing that you represent the estate. Please also include a letter requesting that a new check be issued in the beneficiary’s name.

Additional FAQs for Second Distribution

1. Will I be receiving a second check?
You will receive a second distribution check if you cashed your first round check and if the amount was over $10.00.

2. When will I be receiving the second check?
Your second check will be mailed toward the end of May, 2012

3. How much will I be receiving?
Your second settlement check calculation is outlined in paragraphs 6-10 of the "Status Report and Motion" which is listed on the case documents section of this website. The amount that each eligible Class Member will receive is based on the amount of fees paid by that Class Member as compared to other Class Members, and the amount available for the second distribution.

4. I never cashed my first distribution check, can you reissue?
Unfortunately, if you did not cash your initial distribution check, you are not eligible for a second distribution check.



 1.  What is this case about?
 2.  What is the background of this case?
 3.  Who are the Defendants?
 4.  What is the history of this case?
 5.  What Is a class action?
 6.  Is the settlement final?
 7.  Who is included in the settlement?
 8.  What is a "Payday Loan"?
 9.  What are the terms of the settlement?
10. Do you have to do anything to participate in the settlement?
11. How will the distribution to Class Members be divided?
12. What happens if Class Members don't cash their checks?
13. When will the money under the settlement be available?
14. What can you do if you dispute the amount of your share of the settlement?
15. What happens to any debt that you owed on a Check Into Cash loan that is still outstanding?
16. What are Class Members giving up to get the settlement payments?
17. How do you exclude yourself ("opt-out") from the class?
18. Do you have a lawyer in this case?
19. How will Class Counsel be paid?
20. Do you have to pay legal fees?
21. How much will the Class Representatives receive?
22. Why was the class action settled?
23. What has been happening in the case since it was filed?
24. What can you do if you have concerns about the settlement?
25. How do you file an objection?
26. What will happen at the Final Approval Hearing?
27. What should you do if your address changes?
28. How will you know what is happening with respect to the settlement?

Answers

 1. What is this case about?
The lawsuit was started in 2004. The lawsuit involves payday and related lending done at North Carolina Check Into Cash stores on or after September 1, 2001. Plaintiffs claim that interest and other fees charged on these loans violated North Carolina law. Defendants claim that they did nothing wrong.

The official Class Notice is the notice approved by the Court that describes the settlement and tells Class Members what their rights are. Click HERE to see a copy of the notice.
Top
 
 2. What is the background of this case?
The case is named Hager v. Check Into Cash of North Carolina, Inc. et al, and is case no. 04-CVS-2859 pending in the Superior Court of New Hanover County, in Wilmington, North Carolina. To see the allegations in this case, click HERE to view the Complaint.

The judge in charge of the case is North Carolina Superior Court Judge D. Jack Hooks, Jr. The people who brought the lawsuit are called the Plaintiffs; the companies and individuals who were sued are called the Defendants.
Top
 
 3. Who are the Defendants?
The Defendants are Check Into Cash of North Carolina, Inc., Check Into Cash, Inc., Jones Management Services, LLC, W. Allan Jones, and Stephen M. Scoggins.
Top
 4. What is the history of this case?
The Court decided the lawsuit was appropriate to proceed as a class action and certified it as a class action in 2009. Click HERE to view Judge Hooks' ruling on class certification. An appeal was filed to this ruling. While the case was on appeal, mediation and settlement discussions were held, and a proposed settlement was reached. The settlement requires court approval for it to come into effect. In the meantime, the appeal has been put on hold.

The settlement was preliminarily approved by Judge Hooks on December 23, 2010. Click HERE to see the Plaintiffs' Request for Approval. Click HERE to see Judge Hooks' Preliminary Approval Order. A final approval hearing has been scheduled for April 15, 2011 at 1:00 p.m. at the New Hanover County Courthouse in Wilmington, North Carolina. The deadline to "opt out" of the lawsuit is March 25, 2011. The deadline to object to this settlement is March 25, 2011.
Top
 5. What is a Class Action?
In a class action, one or more people called "Class Representatives" (in this case, Lisa Hager and Ira Nebraska Hall) sue on behalf of other people who have similar claims. All these people are called "Class Members" and are part of the "Class." The Class was certified or recognized by the Court in this case on July 27, 2009. In a class action, one court resolves the issues for all Class Members in one single case, except for those who exclude themselves ("opt out") from the class.
Top
 6. Is the settlement final?
Even though the parties have agreed to a proposed settlement, it is up to the Court to decide whether the settlement will be approved. On April 15, 2011 at 1:00 p.m., the Court will hold a hearing (the "Final Approval Hearing") to decide whether to approve the proposed settlement.
Top
 7. Who is included in the settlement?
Anyone who obtained a "Payday Loan" at a North Carolina store doing business under the name "Check Into Cash" or "Check Into Cash of North Carolina" at any time on or after September 1, 2001, and who does not opt out, is included.
Top
 8. What is a "Payday Loan"?
A "Payday Loan" is defined to mean cash advances, deferred deposit check cashing disbursements, loans (including installment loans and zero interest loans) or other transactions, including those transactions in which any Defendant marketed, serviced or processed a loan originated by a third party, as a consequence of which a Class Member came to be indebted in a consumer transaction conducted at a North Carolina office doing business under the name " Check Into Cash, Check into Cash, Check Into Cash, Inc., Check Into Cash of North Carolina, Check Into Cash of North Carolina, Inc."
Top
 9. What are the terms of the settlement?
If approved, the Defendants will pay $12 million into a settlement fund in four installments, the last of which is to be paid in December of 2011. Click HERE to view the terms of the Settlement Agreement. The Plaintiffs are asking the Court to award Class Counsel one-third of that amount, or $4 million, as fees. If those fees are awarded by the Court, and after paying for the expenses of the case and the settlement, there should be approximately $7.5 million to distribute to the Class Members.

There are roughly 109,000 members of the Hager class. The $7.5 million is to be divided among all of the Class Members based on the amount of Payday Loan fees each of the Class Members paid on or after September 1, 2001.
Top
10. Do you have to do anything to participate in the settlement?
No. If you are a Class Member, the settlement administrator will mail you a Class Notice. Click HERE to see the Class Notice. If you believe you are a Class Member and you do not receive a Class Notice in the mail, this may mean that the settlement administrator does not have your correct address. For information on changing your address, click HERE, or call 1-888-292-5831.
Top
11. How will the distribution to Class Members be divided?
The cash available for distribution to a particular Class Member will be allocated based on the amount of that Class Member's fees to the amount of all fees paid by all Class Members. Each Class Member who entered into a "Payday Loan" and who paid any fees during the Class Period will receive at least one distribution/payment from the settlement fund, and will receive a minimum of at least $10. The amounts will range from $10 to several hundred dollars per Class Member, with an average of approximately $68. These amounts will increase if some Class Members cannot be located or do not cash their checks.
Top
12. What happens if Class Members don't cash their checks?
If checks cannot be delivered to some Class Members or are not cashed by the Class Members to whom they are sent, those amounts will be re-distributed to those Class Members who have cashed a prior distribution check. Any amounts remaining in the settlement fund after this process may be distributed as directed by the Court for purposes that will benefit the public. None of the money will go back to the Defendants.
Top
13. When will the money under the settlement be available?
If the Court approves the settlement, there could be an appeal. Any appeal would delay distributions until the appeal is resolved. If there is no appeal, the first round of checks should go out in the second half of 2011. The final distribution should occur during the first half of 2012.
Top
14. What can you do if you dispute the amount of your share of the settlement?
The amount of your share will be based on the amount of fees paid compared to fees paid by other Class Members. The amount is determined based on information in Check Into Cash's computer records. If you believe the amount of your share of the settlement is wrong, you should contact Class Counsel at the address provided below. You should send Class Counsel a letter, with information about why you dispute the amount. You will be asked to provide proof of your Payday Loans if your records are different from the computer records.

Carlene McNulty, Esq.
N.C. Justice Center
224 South Dawson Street
PO Box 28068
Raleigh, NC 27611
Top
15. What happens to any debt that you owed on a Check Into Cash loan that is still outstanding?
If you did not pay back any part of a Payday Loan that you got on or after September 1, 2001, you will be released from having to pay it back. You do not owe any money on any Payday Loan that was not repaid.
Top
16. What are Class Members giving up to get the settlement payments?
Unless a Class Member excludes himself or herself ("opts out") from the Class, they will be part of the Class. Class Members release or give up the right to pursue any lawsuit or claim against any of the Defendants over Payday Loans made in North Carolina during the Class Period.
Top
17. How do you exclude yourself ("opt-out") from the class?
If you do not want to be part of the Class, you can take yourself out of the Class by "opting out." To opt out of the settlement, you must send a letter by mail saying that you want to be excluded from Hager v. Check Into Cash of North Carolina, Inc. Be sure to include your name, address, telephone number, and your signature. You must mail your opt-out request postmarked no later than March 25, 2011 to:

Hager v. Check Into Cash of North Carolina, Inc. Opt Out
c/o Gilardi & Co
P.O. Box 8090
San Rafael, CA 94912-8090

You cannot opt out of the Class by telephone or e-mail. If you opt out of the Class, you will not receive any money from the settlement, you cannot object to the settlement, and you will not be legally bound by anything that happens in the case.
Top
18. Do you have a lawyer in this case?
Yes. The following are "Class Counsel" who have been appointed by Judge Hooks to represent the Class.

Carlene McNulty of the NC Justice Center, Raleigh, NC
Mal Maynard of the Financial Protection Law Center, Wilmington, NC
Jerry Hartzell of Hartzell & Whiteman, Raleigh, NC
Mona Wallace and John Hughes of Wallace & Graham, Salisbury, NC
Paul Bland of Public Justice, Washington, D.C.
Richard Fisher of Richard Fisher Law Office, Cleveland, TN

Click on the blue links above to view the lawyers' websites
Top
19. How will Class Counsel be paid?
Class Counsel will ask the Court to award them attorneys' fees equal to one third of the settlement amounts paid by Defendants. If the Court approves this, Class Counsel would receive a fee of $4 million out of the total settlement fund of $12 million. In addition, Class Counsel will request reimbursement of litigation-related expenses they have incurred on behalf of the Class, and will ask the Court to reserve funds for the costs of administering the settlement.

Class Counsel's motion for fees and expenses was filed February 28, 2011, and copies of the papers relating to this request have been posted on this website.

Class Counsel believe the attorney fee application is consistent with what has been done in other cases, and that a one-third fee is consistent with customary practice in North Carolina.

UPDATE 3/3/11: In Class Counsel's motion for attorneys' fees and costs, they have reduced their fee request from 33% to 30% of the total settlement fund. You can see the filed motion by clicking HERE.
Top
20. Do you have to pay legal fees?
No, the legal fees will be paid directly from the cash component of the settlement. You will not pay any additional fees to the lawyers.
Top
21. How much will the Class Representatives receive?
Class Counsel will ask the Court to approve special awards of $20,000 each for Lisa Hager and Ira Nebraska Hall, the two Class Representatives.
Top
22. Why was the class action settled?
The class action was hard fought from the time it was filed in 2004. The Court did not decide the case in favor of Plaintiffs or Defendants. Instead, both sides agreed to a settlement. That way, they avoid the risks, delays and costs of further litigation. As part of the settlement, each Class Member who paid any fees for Payday Loans on or after September 1, 2001 will receive some payment. Class Counsel think the settlement is best for the Class Members.
Top
23. What has been happening in the case since it was filed?
This case has been pending for six and a half years. The procedural issues have been hotly contested. Defendants had argued that the case could not proceed as a class action because of the language in the Payday Loan paperwork. Each Payday Loan customer was required to sign a pre-dispute binding mandatory arbitration clause. This arbitration clause said that any claims against the Defendants must be resolved one-at-a-time in arbitration. The arbitration clause said "no class actions." Judge Hooks initially granted the Defendants' motion, but then denied the Defendants' motion to send the case to arbitration. Click HERE to view Judge Hooks' order on arbitration.

The case has been appealed twice to the North Carolina Court of Appeals. The Court of Appeals reviewed the issue in 2008, and sent the case back for further consideration. Click HERE for the Court of Appeals decision. The case is currently back before the Court of Appeals on the same issue. The parties have agreed to put the appeal on hold so that the case can be settled.
Top
24. What can you do if you have concerns about the settlement?
You can opt out of the settlement if you don't want to be in the Class. You can object to the settlement or to the attorneys' fees, so long as you do not opt out of the Class. By filing an objection, you can tell the Court that you don't agree with the settlement or some part of it, or with the request for attorneys' fees. You can give reasons why you think the Court should not approve the settlement or the fee request. The Court will consider your views.

You may object only if you stay in the Class. Excluding yourself (or opting out) is telling the Court that you don't want to be part of the Class. If you exclude yourself, you have no basis to object because the case does not affect you.
Top
25. How do you file an objection?
To object, you must file your objection with the Court and deliver written objections to Class Counsel and Defendants' Counsel, postmarked or hand-delivered no later than March 25, 2011, stating (i) your name, address, and telephone number, (ii) the name of this case and the case number, (iii) a clear statement of each objection; and (iv) an explanation of any specific reasons for each objection, including any legal and factual support, and any evidence you intend to offer in support of the objection. Objecting Class Members, whether or not represented by counsel, must also make themselves available for deposition by Class Counsel and Defendants' Counsel in Raleigh, NC on or before April 8, 2011. Mail or hand deliver the objection to Class Counsel, Defendants' Counsel, and the Court so that the objection is postmarked or delivered no later than March 25, 2011, to:

Carlene McNulty, Esq.   Matthew McGuire, Esq.   Hager Class Settlement
N.C. Justice Center   Alston & Bird LLP   New Hanover County Courthouse
224 South Dawson Street   4721 Emperor Blvd.   316 Princess Street
PO Box 28068   Suite 400   Wilmington, N.C. 28401
Raleigh, N.C. 27611   Durham, N.C. 27703    

Top
26. What will happen at the Final Approval Hearing?
The Court will hold the Final Approval Hearing to decide whether to approve the settlement. At the Final Approval Hearing, the Court will consider whether the settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them. The Court will decide whether to approve the settlement. The Court will also decide the request for attorneys' fees. You may attend the Final Approval Hearing and you may ask to speak, but you don't have to. Class Members or their attorneys intending to speak at the hearing must file with the Court and deliver to Class Counsel and Defendants' Counsel a notice stating how much time the Class Member anticipates needing to present the objection; identifying, by name, address, telephone number and detailed summary of testimony, any witnesses the Class Member intends to present; and identifying and providing copies of all exhibits the Class Member intends to offer. The notice of intent to appear must be post-marked or hand-delivered by March 25, 2011. You cannot speak at the hearing if you do not file a notice as provided herein or if you have opted out of the settlement. The Final Approval Hearing will be held at the following time and place:

New Hanover County Courthouse
316 Princess Street
Wilmington, N.C. 28401
March 31, 2011 at 1:00 PM
Top
27. What should you do if your address changes?
If your address has changed from the address shown on the Class Notice, or if you move before you receive a check in the mail, you must notify the settlement administrator, either by telephone, e-mail, or in writing, at the following address:

Hager v. Check Into Cash of North Carolina Address Change
c/o Gilardi & Co
P.O. Box 808054
Petaluma, CA 94975-8054

Click HERE to e-mail the class administrator.
Top
28. How will you know what is happening with respect to the settlement?
You should review and continue to monitor this website from time to time to keep up to date with the developments in the settlement of the class action.
Top


IMPORTANT DATES

Receive Payment You do not need to do anything
Exclude Yourself March 25, 2011
Object to the Settlement March 25, 2011
Final Approval Hearing Friday, April 15, 2011 at 1:00 p.m.
Copyright © 2011  Gilardi & Co. LLC.