Villanueva, et al. v. Liberty Acquisitions Servicing, LLC, et al.
www.LibertyAcqSettlement.com

Frequently Asked Questions

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1. Why did I get a Notice?

The Court ordered that a Notice be sent to you because you may be a member of a certified class in a class action lawsuit, and also because you have a right to know about a proposed settlement of the class action against Liberty Parties, and about your options, before the Court decides whether to approve the settlement. If the Court approves it, a Settlement Administrator will authorize the payments that the settlement allows.

The Notice explains the lawsuits, the settlement, your legal rights, what benefits are available, who is eligible for them, and how to get them. Please read the Notice carefully.

The United States District Court for the District of Oregon (Portland Division) has jurisdiction over this proposed settlement. The persons who sued are called the Plaintiff, and the companies they sued (LAS, Holdings and Javlin Parties) are called the Defendants (“Liberty Parties”).

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2. What is the lawsuit about?

LAS was a collection agency. Holdings was LAS’ sole member. Javlin Parties were lenders to Holdings. LAS sued debtors and then obtained judgments on assigned accounts against people who owed money on account of US Bank Demand Deposit Agreements (“US Bank DDA”).

Representative Plaintiff filed a proposed class action lawsuit against Liberty Parties under the caption Villanueva, et al. v. Liberty Acquisitions Servicing, LLC, et al., Consolidated Case No. 3:14-CV-01610-HZ (Lead Case), Case No. #:3:15-CV-02354-HZ (Trailing Case) (D. Or.) (the “Action”).

In the Action, Representative Plaintiff claimed, among other things, that LAS obtained judgments in violation of federal law (the Fair Debt Collection Practices Act) by filing a lawsuit, serving the lawsuit, and entering a judgment against debtors, where the lawsuit and judgment was based on non-payment of a debt originating from U.S. Bank DDA (checking accounts) in which LAS alleged a right to interest calculated at a contractual rate. The class action lawsuit also alleges that Holdings is the alter ego of LAS and that LAS fraudulently transferred assets to the Javlin Parties. Liberty Parties deny all allegations of wrongdoing and have asserted many defenses. The settlement is not an admission of wrongdoing.

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3. Why is this a class action?

In a class action, one or more people, called Class Representatives, sue on behalf of people who have similar claims. In this case, the Class Representative is Jesus Villanueva, Jr. One court resolves the issues for all Class Members, except those who exclude themselves from the Class. United States District Court Judge Marco Hernandez has certified the class action. The Court has jurisdiction over the case in which the parties have submitted this settlement for approval.

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4. Why is there a settlement?

The Court did not decide in favor of Plaintiff or Liberty Parties. Instead, both sides agreed to a settlement. That way, they avoid the cost of a trial as well as the risk that Liberty Parties might prevail at a trial, and settlement benefits go to the Class Members. The Class Representative and their attorneys think the settlement is best for the Class Members.

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5. How do I know if I am part of the settlement?

Judge Hernandez has decided that everyone who fits this description is a Class Member:

All natural persons against whom Liberty Acquisitions Servicing, LLC filed a lawsuit and obtained a judgment based on alleged non-payment of a debt originating from a U.S. Bank National Association demand deposit account and incurred for personal, family or household purposes where: (a) the lawsuit alleged a right to, and the judgment included, prejudgment interest at a contractual interest rate purportedly set forth in the agreement governing the debt; and (b) Liberty Acquisitions Servicing, LLC collected or attempt[ed] to collect on the judgment on or after October 10, 2013. As part of the settlement, the parties agreed that approximately 18,000 debtors are class members. That determination was made using electronic data in LAS’s computer systems that relates to LAS’ lawsuits against U.S. Bank debtors.

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6. Who is not included in the Class?

The Class does not include Liberty Parties, any entity that has a controlling interest in any Liberty Parties, and Liberty Parties’ current or former directors, officers, counsel, and their immediate families. The Class also does not include any persons who validly request exclusion from the Class.

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7. What does the settlement provide?

As part of the settlement, Liberty Parties agree to fund a settlement fund of $2,250,000.00. That settlement fund will be distributed by a claims administrator, according to the terms of the settlement agreement.

If you fall into one or both of the following categories, you will receive a payment from the settlement fund.

Category 1: If LAS (a) filed a lawsuit against you; (b) LAS obtained a judgment against you; (c) the lawsuit and judgment against you was based on non-payment of a debt originating from US Bank DDA that was incurred for personal, family or household purposes; (d) the lawsuit against you alleged a right to, and judgment included, prejudgment interest at a contractual interest rate purportedly set forth in the agreement governing the debt; and (e) LAS collected or attempted to collect on the judgment against you on or after October 10, 2013, you will receive a portion of the settlement. This payment is called a “statutory damages payment.”

Category 2: If LAS (a) filed a lawsuit against you; (b) LAS obtained a judgment against you; (c) the lawsuit and judgment against you was based on non-payment of a debt originating from US Bank DDA that was incurred for personal, family or household purposes; (d) the lawsuit against you alleged a right to, and judgment included, prejudgment interest at a contractual interest rate purportedly set forth in the agreement governing the debt; (e) LAS collected or attempted to collect on the judgment against you on or after October 10, 2013; and (f) LAS collected an aggregate total that was greater than the aggregate total of the principal (money award), court costs, attorney fees and any adjustments made by LAS in the collection process, you will receive an additional amount from the settlement fund. This payment is called an “actual damages payment.” If you receive an actual damages payment, you will also receive a statutory damages payment.

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8. What can I get from the settlement?

If you fall within Category 1, you will receive a $10 share. Each Eligible Claimant in this Category will receive the same payment. The Representative plaintiff will receive $1,000 in this Category, as provided by the federal Fair Debt Collections Practices Act.

If you fall within Category 2, you will receive both a $10 share under Category 1 and an additional, prorated share of the settlement fund. Each Eligible Claimant in this Category will receive a prorated share determined by their percentage of the predetermined settlement amount remaining for this category of payment.

If you fall within one or both of the categories, a payment will be sent to you in accordance with Judge Hernandez’ Order. You will not need to make a claim or file any papers in order to receive payment.

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9. When would I get payment?

The Court held a hearing on Thursday, September 14, 2017, and approved the settlement. Settlement checks were sent to eligible class members on Thursday, November 30, 2017. If you need to request a check reissue, you must write to the Settlement Administrator, and include your full name, current and former address, claim number (if available), daytime telephone number with the best time of day to reach you, and a statement explaining the reason for your re-issue. Please mail your correspondence to:

Liberty Litigation Settlement Administrator PO Box 10434 Dublin, OH 43017 – 4034

If your request is complete your check will be reissued as soon as possible.

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10. What am I giving up if I remain in the Class?

The deadline to exclude yourself passed on August 7, 2017.

Unless you exclude yourself, you stay in the Class, and that means that you can’t sue, continue to sue, or be part of any other lawsuit against Liberty Parties or other Released Parties about the legal issues in this case. If the settlement is approved and becomes final and not subject to appeal, then you and all Class Members release all “Released Claims” against all “Released Parties.”

“Released Claims” means any and all claims, rights (including rights to restitution or reimbursement), demands, actions, causes of action, suits, liens, damages, attorneys’ fees, obligations, contracts, liabilities, agreements, costs, expenses or losses of any nature, whether known or unknown, direct or indirect, matured or unmatured, contingent or absolute, existing or potential, suspected or unsuspected, equitable or legal, and whether under federal statutory law, federal common law or federal regulation, or the statutes, constitutions, regulations, ordinances, common law, or any other law of any and all states or their subdivisions, parishes or municipalities that arise out of or relate in any way to the claims in the Action, even though any such claim or claims were not presented and might not have been presentable in the Action, and including but not limited to all claims arising out of or relating to any allegation that LAS filed a lawsuit, served a lawsuit, entered a judgment, sent a communication, communicated, or accepted any payment incident to a lawsuit where the lawsuit and judgment referred to was based on non-payment of a debt originating from U.S. Bank DDA and in which LAS alleged a right to interest calculated at a contractual rate. Released Claims include any claims that have been, or could have been, brought in the Action, as well as any claims arising out of the same nucleus of operative facts as any of the claims asserted in the Action.

“Released Parties” means LAS, Holdings, Javlin One, Javlin Capital and their respective affiliates, parents, direct and indirect subsidiaries, agents, insurers, and any company or companies under common control with any of them, and each of their respective predecessors, successors, past and present officers, directors, employees, agents, servants, accountants, attorneys, advisors, shareholders, insurers, representatives, partners, vendors, issuers, and assigns, or anyone acting on their behalf.

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11. How do I get out of the settlement?

The deadline to exclude yourself passed on August 7, 2017.

If you don’t want a payment from this settlement, and you want to keep any right you may have to sue or continue to sue Liberty Parties or other Released Parties on your own about the Released Claims, then you must take steps to remove yourself from the Class. This is called excluding yourself — and is sometimes referred to as “opting out” of the Class. Liberty Parties may terminate the settlement if a certain number of people exclude themselves from the Class.

To exclude yourself from the settlement, you must send a signed letter by mail stating that you “want to opt out of the Liberty Litigation.” Please be sure to include your name, address, telephone number, and your signature.

Liberty Litigation Settlement Administrator P.O. Box 10434 Dublin, OH 43017-4034

You can’t exclude yourself on the phone or by fax or email.

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12. What is the effect if I exclude myself from this settlement?

If you ask to be excluded, you will not get any payment from this settlement. Also you cannot object to the settlement. You will not be legally bound by anything that happens in the Action. You may be able to sue (or continue to sue) Liberty Parties in the future about the legal issues in this case.

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13. If I don’t exclude myself, can I sue Liberty Parties for the same thing later?

The deadline to exclude yourself passed on August 7, 2017.

No. Unless you exclude yourself, you give up your right to sue Liberty Parties and the other Released Parties for the claims that this settlement resolves. You must exclude yourself from this Class to pursue your own lawsuit.

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14. If I exclude myself, can I get a payment from this settlement?

No. If you exclude yourself, you will not get any payment from this settlement. You may exercise any right you may have to sue, continue to sue, or be part of a different lawsuit against the Liberty Parties and the other Released Parties.

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15. Do I have a lawyer in the case?

The Court appointed Joshua L. Ross, Keil M. Mueller, and the law firm of Stoll Stoll Berne Lokting & Shlachter P.C., and Kelly Donovan Jones to represent the Class. These lawyers are called Class Counsel. Class members will not be charged for these lawyers. The Court will determine the amount of Class Counsel’s fees and expenses, which Liberty Parties will pay as part of the settlement. If you want to be represented by your own lawyer, you may hire one at your own expense.

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16. How will the lawyers be paid?

Class Counsel will request from the Court an award of attorneys’ fees and expenses and for service awards for the Representative Plaintiff. The total amount sought for attorneys’ fees, costs, and expenses will not exceed $600,000. The amounts sought as service awards for the Representative Plaintiff will not exceed $9,000 to Plaintiff Villanueva. Class Counsel’s fees and expenses and the service awards will be paid from the settlement fund. Liberty Parties have agreed not to oppose these fees and expenses and awards. You have the right to object to the requested fees and expenses and awards. LAS will separately pay the costs to administer the settlement, above the amount paid to the settlement fund.

Class Counsel will file their papers in support of final approval of the Settlement and their application for attorneys’ fees and reimbursement of expenses and for service awards to the Representative Plaintiff, by no later than Friday, July 7, 2017. These papers will also be posted on the settlement website (www.LibertyAcqSettlement.com).

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17. How do I tell the Court if I don’t like the settlement?

The deadline to submit an objection passed on August 7, 2017.

If you are a Class Member, 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 signed letter saying you object to the proposed settlement in Jesus Villanueva, Jr., et al. v. Liberty Acquisitions Servicing, LLC, et al., Consolidated Case No. 3:14-CV-01610-HZ (Lead Case), Case No. #:3:15-CV-02354-HZ (Trailing Case) (D. Or.). Be sure to include your name, address, telephone number, that you are a Class Member, and your signature, and state the reasons why you object to the settlement.

Liberty Litigation Settlement Administrator P.O. Box 10434 Dublin, OH 43017-403

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18. What’s the difference between objecting and excluding?

Objecting is simply telling the Court that you don’t like something about the settlement. You can object only if you stay in the Class. Excluding yourself 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 no longer affects you.

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19. When and where will the Court decide whether to approve the settlement?

The Court granted final approval of the settlement on September 14, 2017.

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20. Do I have to come to the hearing?

The Fairness Hearing was held on September 14, 2017. You were not required to attend.

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21. May I speak at the hearing?

The Fairness Hearing was held on September 14, 2017.

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22. What happens if I do nothing at all?

If you are a Class Member and do nothing, you will remain a member of the Class and you will receive a payment. If you do not exclude yourself from the Class, you won’t be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuit against Liberty Parties or the Released Parties about the legal issues in this case, ever again.

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23. Are there more details about the settlement?

The Notice summarizes the proposed settlement. More details appear in the Settlement Agreement and Release of Claims (the “Settlement Agreement”). Copies of the Settlement Agreement and the pleadings and other documents relating to the case are on file at the United States District Court for the District of Oregon (Portland Division) and may be examined and copied at any time during regular office hours at the Office of the Clerk, Mark O. Hatfield U.S. Courthouse, 1000 S.W. Third Ave., Portland, OR 97204. The Settlement Agreement is also available at the settlement website, www.LibertyAcqSettlement.com.

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24. How do I get more information?

This website provides answers to common questions about the settlement, plus other information, including a copy of the Settlement Agreement. You may also call this toll-free number for more information: (855) 474-3873. You may also write to: Liberty Litigation, Settlement Administrator, P.O. Box 10434, Dublin, OH 43017-4034. You should not direct questions to the Court.

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