.png)
Consumers who financed a motor vehicle for personal use through Hughes Federal Credit Union, or had their vehicle loan assigned to Hughes, and whose vehicle Hughes repossessed in Arizona between May 18, 2019, and Aug. 4, 2023, may be eligible to receive an estimated cash payment of $1,067 from a class action settlement. The settlement class includes 4,458 borrowers and 3,815 qualifying loans.
Hughes Federal Credit Union agreed to pay $7 million to settle a class action lawsuit alleging it sent improper notices to borrowers after repossessing vehicles in violation of Arizona law. The settlement also addresses approximately $25.6 million in claimed deficiency balances and requires Hughes to request that credit reporting agencies delete certain negative trade lines from affected borrowers’ credit files.
Who are the class members?
Class members must meet the following criteria:
- They financed the purchase of a motor vehicle for consumer use through Hughes Federal Credit Union or their vehicle loan was assigned to Hughes.
- They pledged their vehicle as collateral under the finance agreement.
- Hughes Federal Credit Union repossessed their vehicle or ordered it repossessed.
- They had an Arizona address as of the date of repossession.
- The repossession occurred between May 18, 2019, and Aug. 4, 2023.
How much are settlement payments?
Class members are eligible to receive the following benefits:
- After deductions for attorneys' fees and expenses, settlement administration fees and service awards, eligible class members will receive a pro rata cash payment estimated at $1,067 from a $7,000,000 settlement fund.
- For eligible class members who do not opt out of the option, Hughes will eliminate the disputed deficiency balance (the amount still owed after their repossessed vehicle was sold) on their repossessed vehicle loan. The company estimates the value of deficiency balances across all class members is $25,603,000.
- Hughes will request that credit reporting agencies delete the negative trade line associated with the repossessed vehicle and any related deficiencies belonging to eligible class members.
No claim form required
Class members do not need to file a claim to receive a settlement payment.
- Class members can select a payment method online using the notice ID and PIN from the settlement notice they received.
- Class members can submit an address update online using the notice ID and PIN from the settlement notice they received. They may also mail or email a request to the settlement administrator and must include the notice ID and PIN, previous address and current address.
- Class members can view their estimated award information online using the notice ID and PIN from the settlement notice they received.
- Class members can decline the deficiency compromise settlement benefit by completing the election not to accept compromise of disputed deficiency balance form included with their settlement notice and mailing it to the settlement administrator by Nov. 20, 2026.
Settlement administrator's mailing address: Harrison v HFCU, c/o Settlement Administrator, P.O. Box 23648, Jacksonville, FL 32241
Settlement administrator's email address: info@harrisonreposettlement.com
Payout options
- Electronic payment
- Paper check mailed to the address on file
Settlement fund breakdown
The $7,000,000 settlement fund will include:
- Settlement administration costs: To be determined
- Attorneys’ fees: Up to $2,800,000
- Attorneys’ expenses: Up to $50,000
- Service awards to class representatives: $15,000 each ($30,000 total)
- Payments to eligible class members: Remaining settlement funds
Important dates
- Exclusion deadline: Nov. 20, 2026
- Deadline to decline the deficiency compromise: Nov. 20, 2026
- Final approval hearing: Dec. 7, 2026
When is the Hughes Federal Credit Union repo notice settlement payout date?
The settlement administrator will issue payments to eligible class members approximately 61 days after the court grants final approval of the settlement.
Why is there a class action settlement?
The class action lawsuit alleged Hughes Federal Credit Union failed to provide proper notices to borrowers after repossessing their vehicles as required by Arizona law.
Hughes denied the allegations but agreed to settle to avoid the risk and expense of continued litigation.
.webp)
.webp)
.webp)
.webp)
.webp)
.webp)
.webp)
.svg)