On July 9, 2021, the Court granted final approval of the revised class action settlement.
Find out what benefits you may be eligible for.
A lawsuit was brought on behalf of all individuals who obtained a loan from American Web Loan, Inc., its successor,
AWL, Inc., and Clear Creek Lending (a d/b/a of American Web Loan, Inc.) (collectively “AWL”).
The lawsuit claimed, among other things, that AWL violated federal law by making loans at annual interest rates
greater than what is permitted by state law, that AWL did not have a license to lend in any state, that AWL did not
adequately disclose the interest rates, total finance charges, or repayment periods, and that AWL improperly
conditioned its loans on the use of electronic fund transfers.
Defendants deny all allegations in the lawsuit. They maintain that AWL’s loans are legal because the interest rates
and terms were authorized under the law of the Otoe-Missouria Tribe, the federally recognized Native American tribe
that owns and operates AWL, and because AWL borrowers explicitly agreed that Otoe-Missouria law governs the loans.
AWL and certain other Defendants further contend that they are immune from suit because AWL is an arm of the
Otoe-Missouria Tribe. Defendants also contend that: borrowers agreed to arbitrate any disputes; that the loans’
interest rates and other key terms were disclosed to borrowers; and that borrowers were not required to consent to
the use of electronic fund transfers to obtain AWL loans.
The Settlement provides for cash payments totaling $86,000,000 and the cancellation of certain loans as disputed debt.
As part of the proposed Settlement, borrowers who took out a AWL loan from February 10, 2010 to June 26, 2020 may be entitled to a cash payment.
All AWL loans issued prior to June 26, 2020 that AWL still owns will be cancelled as disputed debt as well as the AWL loans sold to Northwood Asset
Management Group, LLC that are unsatisfied. In addition, AWL and Northwood will request that the credit reporting bureau, Clarity Services, delete any negative
credit reporting related to these loans.
If you took out your loan(s) between February 10, 2010 and December 31, 2011, you must demonstrate your eligibility
for a cash recovery from the Settlement by following the procedures described in the Notice.
2021
Exclusion
Deadline
2021
Objection
Deadline
2021
Final Approval
Hearing
2021
Claim Period
For Pre-2012 Loans Ends
| Your Legal Rights and Options in This Settlement | |
|---|---|
|
FOR LOANS ISSUED FROM JANUARY 1, 2012
TO JUNE 26, 2020, IF YOU DO NOTHING |
You will remain a member of the Settlement Class and may be eligible for benefits, including automatic cash payments depending on how much you
have paid on your loan and whether it is cancelled by this Settlement. Cash refunds will be paid to you based on how much you paid and your state of residence. If your loan still has a balance and is still owned by AWL, then it will be cancelled and you do not need to pay it. If you receive a cash payment or a cancelled loan, you will give up rights to ever sue the Defendants and others about the legal claims that are in the lawsuit. You do not give up those rights if you do not receive a cash payment or cancelled loan. If your loan is held by Northwood, a debt collector, it will be cancelled and you do not need to pay it. If your loan was sold to a third party debt collector other than Northwood, the loan is not cancelled, but you will have the right to legal assistance about that loan. |
|
FOR LOANS ISSUED FROM FEBRUARY 10, 2010 TO DECEMBER 31, 2011, YOU MUST SUBMIT A CLAIM FORM TO RECEIVE PAYMENT |
If your AWL loan was taken out before January 1, 2012, you must submit a Claim Form and supporting documentation by July 9, 2021. THIS IS THE ONLY WAY TO GET A PAYMENT RELATED TO ANY LOANS TAKEN OUT BEFORE JANUARY 1, 2012. |
| YOU MAY EXCLUDE YOURSELF | You can opt out of the Settlement and you will not be eligible for any benefits, including any cash payments. This is the only option that allows you to keep any rights you have to bring, or to become part of, another lawsuit involving the claims being settled. There is no guarantee that another lawsuit would be successful or would lead to a larger or better recovery than this Settlement. |
| OBJECT TO THE SETTLEMENT | If you are a member of the Settlement Class and you do not exclude yourself, you may write to the Court about why you do not like the Settlement or why the Court should not approve it. |
A lawsuit was brought on behalf of all individuals who obtained a loan from American Web Loan, Inc., its successor,
AWL, Inc., and Clear Creek Lending (a d/b/a of American Web Loan, Inc.) (collectively “AWL”).
The lawsuit claimed, among other things, that AWL violated federal law by making loans at annual interest rates
greater than what is permitted by state law, that AWL did not have a license to lend in any state, that AWL did not
adequately disclose the interest rates, total finance charges, or repayment periods, and that AWL improperly
conditioned its loans on the use of electronic fund transfers.
Defendants deny all allegations in the lawsuit. They maintain that AWL’s loans are legal because the interest rates
and terms were authorized under the law of the Otoe-Missouria Tribe, the federally recognized Native American tribe
that owns and operates AWL, and because AWL borrowers explicitly agreed that Otoe-Missouria law governs the loans.
AWL and certain other Defendants further contend that they are immune from suit because AWL is an arm of the
Otoe-Missouria Tribe. Defendants also contend that: borrowers agreed to arbitrate any disputes; that the loans’
interest rates and other key terms were disclosed to borrowers; and that borrowers were not required to consent to
the use of electronic fund transfers to obtain AWL loans.
The Settlement provides for cash payments totaling $86,000,000 and the cancellation of certain loans as disputed debt.
As part of the proposed Settlement, borrowers who took out an AWL loan from February 10, 2010 to June 26, 2020 may
be entitled to a cash payment. Certain AWL loans that are deemed to be in “collection” by AWL will be cancelled as
disputed debt. In addition, AWL will request that the credit reporting bureau, Clarity Services, delete any negative
credit reporting related to these loans.
If you took out your loan(s) between February 10, 2010 and December 31, 2011, you must demonstrate your eligibility
for a cash recovery from the Settlement by following the procedures described in the Notice.
10
2020
Exclusion
Deadline
21
2020
Objection
Deadline
21
2020
Final Approval
Hearing
3
2020
Claim Period
For Pre-2012 Loans Ends
DO NOTHING
You will remain a member of the Settlement Class and may be eligible for benefits, including cash payments. You will give up rights to ever sue the Defendants and others about the legal claims that are in the lawsuit.
SUBMIT A CLAIM FORM
If your AWL loan was taken out before January 1, 2012, you must submit a Claim Form and supporting documentation by November 3, 2020. THIS IS THE ONLY WAY TO GET A PAYMENT RELATED TO ANY LOANS TAKEN OUT BEFORE JANUARY 1, 2012.
You can opt out of the Settlement and you will not be eligible for any benefits, including any cash payments. This is the only option that allows you to keep any rights you have to bring, or to become part of, another lawsuit involving the claims being settled. There is no guarantee that another lawsuit would be successful or would lead to a larger or better recovery than this Settlement.
If you are a member of the Settlement Class and you do not exclude yourself, you may write to the Court about why you do not like the Settlement or why the Court should not approve it.