The FTC /
Associates Class Action
Settlement Fact Sheet
Class Action Settlement between Citigroup and The Associates(1);
and the Federal Trade Commission; and various individual plaintiffs.
The Associates who obtained real estate or personal loans that
included credit insurance products from December 1, 1995 through
November 30, 2000, and who have not previously settled credit
insurance claims against The Associates or already received a full
||The FTC and
individual consumers claim that The Associates deceived borrowers into
purchasing credit insurance products in connection with their loans.
WHAT TO DO:
have to do anything right now. The Court must approve the Class Action
Settlement before it is final. Watch your mailbox over the next
several weeks for further notices from the Court and the FTC. If your
address changes, notify the FTC's toll-free consumer hotline at
|The FTC will
administer a settlement fund of $215 million, out of which eligible
borrowers may receive payment. Most consumers will receive checks, but
some consumers with open loans will receive a credit to reduce the
balance of their loans.
About the Class Action Settlement
- Am I eligible for a payment from the
- Maybe. Consumers who purchased credit
insurance in connection with a loan from The Associates between December
1, 1995 and November 30, 2000 may be eligible for payment from the
settlement fund. Consumers who have already received a full refund of
their premiums or who previously settled their claims are not eligible.
- How do I apply for a payment from the
- You don't have to do anything right now.
The Court must approve the Class Action Settlement before it is final.
Watch your mailbox over the next several weeks for further notices from
the Court and the FTC.
- How much money will I receive?
- If the Class Action Settlement is
approved, The FTC will administer a settlement fund of $215 million to
be paid to class members. How much you receive depends on how much money
you spent on credit insurance premiums, and how many consumers
participate in the settlement program.
1. "The Associates"
refers to Associates First Capital Corporation and its subsidiaries,
including Associates Corporation of North America.