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Consumers who had a finance agreement with Garden Savings Federal Credit Union whose motor vehicle the credit union repossessed between March 20, 2009, and March 20, 2015, may be eligible to claim a cash payment and/or debt forgiveness from a class action settlement.
Garden Savings Federal Credit Union agreed to pay more than $6.2 million to settle a class action lawsuit alleging it violated the New Jersey Commercial Code and the New Jersey Consumer Fraud Act by failing to provide proper statutory notices and disclosures when it repossessed and sold vehicles.
Who are the class members?
Class members must meet the following criteria:
- They had a finance agreement with Garden Savings Federal Credit Union.
- Garden Savings Federal Credit Union repossessed their motor vehicle between March 20, 2009, and March 20, 2015.
The settlement administrator used Garden Savings Federal Credit Union’s records to identify class members. If an individual received an email or postcard notice, it means the records identified them as a class member and they are entitled to settlement benefits. This includes both current and former borrowers whose vehicles Garden Savings repossessed during the specified timeframe.
How much can class members get?
The total settlement value exceeds $6.2 million, including a $4,120,000 cash fund and $2,103,810.56 in deficiency balance forgiveness. After deducting attorneys’ fees, litigation costs, a service award for the named plaintiff and administrative expenses, the settlement administrator will distribute the remaining funds among eligible class members.
The administrator will calculate each class member’s payment based on the following formula:
- 10% of the principal amount of the loan + the total finance charges for the loan
The administrator will also proportionally adjust each class member's actual payment based on the number of eligible class members and the net settlement fund after all deductions.
The settlement administrator will not issue a 1099-MISC form for these payments. Recipients are responsible for seeking independent tax advice regarding any payments or benefits.
No action needed to receive compensation
Class members do not need to file a claim to receive compensation. If an individual received a notice, the settlement administrator already has their information on file and will automatically mail payment to the address on record.
$6.22 million settlement fund breakdown
The $6,223,810.56 settlement fund comprises:
- Cash settlement fund: $4,120,000
- Settlement administration costs: To be determined
- Attorneys’ fees: Up to $2,074,603.52
- Attorneys’ expenses: To be determined
- Service award to named plaintiff: Up to $25,000
- Payments to eligible class members: Remaining balance
- Relinquished deficiency balances: $2,103,810.56
Important dates
- Deadline to request exclusion (opt out): March 17, 2026
- Final approval (fairness) hearing: May 15, 2026
When is the Asiedu v. Garden Savings Federal Credit Union payout date?
If the court grants final approval of the settlement at the May 15, 2026, hearing, the settlement administrator will make payments within 60 days after approval. However, if there are appeals or objections, the payment timeline could be delayed.
Why is there a class action settlement?
The class action lawsuit alleged that Garden Savings Federal Credit Union violated the New Jersey Commercial Code and the New Jersey Consumer Fraud Act by failing to provide proper notices and disclosures after repossessing vehicles. The lawsuit claimed these practices harmed borrowers by depriving them of required information and potentially leading to improper deficiency balances.
The credit union denies any wrongdoing but agreed to settle to avoid further litigation costs and uncertainty.
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