American Fair Credit Association (AFCA) Class Action Settlement

Girard Gibbs achieved $40 million settlement on behalf of AFCA customers in California

Girard Gibbs filed a class action lawsuit on behalf of California residents who became members of the American Fair Credit Association (AFCA), alleging that AFCA had engaged in deceptive practices towards its customers.

The lawsuit contended that AFCA’s membership program, which was marketed primarily to low-income consumers as a means of repairing damaged credit, misrepresented its ability to improve credit and denied customers many of the advertised benefits of the contract. Members were required to pay more than $500 in fees for the first year of membership, in exchange for educational materials and a members-only credit card with an initial credit limit of only $300. If members wished to terminate membership, they were required to give notice with hand delivery or certified mail and continue to pay membership dues for 90 days.

In February 2003, Judge Ronald Sabraw of the Alameda County Superior Court and Judge Maxine Chesney of the U.S. District Court for the Northern District of California granted final approval to the settlements, valued at over $40 million.

Why Girard Gibbs LLP?

Girard Gibbs is a national litigation firm specializing in securities litigation, consumer class actions and complex business litigation. Girard Gibbs' managing partner Daniel Girard was voted one of Northern California's Super Lawyers in 2007, 2008, and 2009 by Law & Politics, recognizing him as one of the top 5-percent of attorneys practicing in Northern California.