Tuesday, 20 September 2011 10:44
By Matt O’Donnell

Chase Bank has reached a class action lawsuit settlement over allegations it induced individuals enrolled in debt management plans to pay fees to certain credit counseling agencies.

Who Qualifies for the Settlement?

If you enrolled in a debt management plan and paid fees to any of the 11 credit counseling agencies listed below, you may qualify for a share of the Chase Bank debt management plan settlement. As a result, you could receive part of the payout created for affected consumers.

Why the Lawsuit Happened

The lawsuit Abat, et al. v. Chase Bank USA, N.A., et al. claims that several credit counseling agencies falsely represented themselves as non-profit organizations. According to the complaint, Chase allegedly benefited from these misleading statements by encouraging people to join debt management plans and pay fees to those agencies.

List of Agencies Involved

You are a Class Member if you paid initial or monthly fees to any agency linked to Andris Pukke, Eriks Pukke, DebtWorks, or the Ballanger Group. These agencies include:

• AmeriDebt, Inc.

• CrediCure, Inc.

• Neway, Inc.

• Debtscape, Inc.

• PreActiv, Inc.

• Debticated Consumer Counseling, Inc.

• A Better Way Credit Counseling, Inc.

• Mason Credit Counseling, Inc.

• Nexum Credit Counseling, Inc.

• The Credit Network, Inc.

• Visual Credit Counseling, Inc.

What Chase Agreed To

Chase denies wrongdoing. However, the company agreed to create a $4.9 million settlement fund to end the litigation. After attorney fees, administrative costs, and other required payments, the remaining amount will be split equally among eligible Class Members who file valid claims.

How Much Money You May Receive

Your payment depends on the number of valid claims.

• If fewer than 3,000 claims are submitted, each approved Class Member will receive a share of $2.25 million, which equals $750 per person.

• If more claims are submitted, the amount each person receives will decrease because the fund is distributed equally.

How to Submit Your Claim

To receive your cash payment, you must send a valid claim form. You can submit it online or mail it. However, your form must be sent or postmarked no later than October 10, 2011.

Where to Learn More

You can find claim forms and detailed information about your rights at the settlement website: www.AbatSettlementClass.com.