Frequently Asked Questions
BASIC INFORMATION
1. Why did I get notice?
Harborstone’s records show that you applied to Harborstone for a loan during the class period (between January 26, 2018, and August 31, 2021), and your loan application was declined, which may make you eligible to receive benefits under the settlement.
2. What is this lawsuit about?
Plaintiff claims Harborstone violated certain federal laws under the Civil Rights Act and the Fair Credit Reporting Act. Harborstone denies the claims and denies that it has violated any laws.
3. Why is there a settlement?
The Court did not decide in any party’s favor. Instead, both sides agreed to a settlement. This allows the parties to avoid the cost and risk of a trial, and the people affected will be entitled to compensation. The Class Representative and his attorneys think the settlement is best for all Class members under the circumstances. Harborstone has not admitted fault or that it violated any laws, but it and its attorneys agree that a settlement is in the best interest of all parties.
4. What claims are resolved by the settlement?
The settlement will resolve all claims and allegations made on behalf of the Class members against Harborstone in the complaint filed in the lawsuit regarding Harborstone’s alleged violation of federal law, including the following claims:
Alienage discrimination against Plaintiff and Class members in violation of the Civil Rights Act of 1866, 42 U.S.C. § 1981; and
Obtaining a consumer report without a permissible purpose in violation of the Fair Credit Reporting Act, 15 U.S.C. § 1681b(f).
The settlement will resolve alleged violations occurring between January 26, 2018, and August 31, 2021.
5. What are the basic terms of the settlement?
Subject to Court approval, the essential terms of the settlement are as follows:
Settlement Fund: The settlement requires Harborstone to pay a total of $186,750.00 to establish a Settlement Fund. Under the settlement, the money in this fund will be distributed to the Settlement Class members as compensation for releasing the claims resolved by the settlement as described above.
Settlement Administrator: The settlement requires Simpluris to act as and effectuate the duties of the Settlement Administrator in accordance with the Settlement Agreement. Plaintiff will ask the Court to approve the payment of fees, costs, and other charges imposed by the Settlement Administrator. Harborstone has agreed to pay up to $25,000.00 for the cost of settlement administration.
Class Representative Service Award: Class Counsel will ask the Court to approve a Service Award of $5,000.00 to the Class Representative to compensate him for his time and effort in pursuing this case on behalf of the Class. If approved, Harborstone has agreed to pay up to $5,000.00 for the Service Award as ordered by the Court.
Attorneys’ Fees and Costs: Class Counsel have been working on this case for more than two years but have not received any fees or reimbursements for the costs of the lawsuit. Plaintiff will ask the Court to approve a payment by Harborstone of $150,000.00 to Class Counsel to compensate them for their reasonable attorneys’ fees and reimburse them for out-of-pocket litigation costs.
Distribution of the Settlement Fund: The Settlement Administrator, Simpluris, will make payments directly to Settlement Class members. If you have recently moved, plan to move within the next 90 days, or move before you have received all payments owed to you, please contact the Settlement Administrator to provide an updated address. Contact information is provided in Section 12 below.
Tax Treatment of Settlement Payments: Settlement payments made to each Settlement Class member will be reported to government taxing authorities on an IRS Form 1099. There will be no taxes withheld, but these payments will still be considered taxable income. Please consult with your accountant or tax advisor regarding potential tax consequences of the Settlement payment.
Changes to Harborstone’s Policies and Procedures: As part of the Settlement, Harborstone has agreed to implement and follow the following policies and procedures:
Harborstone will not maintain policies, practices, or guidelines that allow the evaluation of any person who is a non-United States citizen under any different guideline or standard than it would evaluate a person who is a United States citizen when considering whether to admit the person as a member or extend credit to the person;
Harborstone will not require an applicant to provide documentation showing the applicant can remain in the United States legally through the maturity date of a loan for which the applicant has applied;
Harborstone will not consider an applicant’s national origin, race, or immigration status as factors to evaluate creditworthiness, regardless of whether a person is a United States citizen; and
Harborstone will maintain language in its policies confirming that it does not discriminate on account of race, color, or national origin.
Release of Claims: Upon final approval by the Court, Settlement Class members will dismiss the lawsuit and release Harborstone from all claims that were or could have been brought against it based on the allegations asserted in the complaint filed in this lawsuit. This releases Harborstone from liability related to any claims for unpaid wages, exemplary damages, interest, fees, costs, attorneys’ fees, and all other claims made in this lawsuit or that could have been made in this lawsuit for events occurring between January 26, 2018, and August 31, 2021.
For a full copy of the Settlement Agreement, please click HERE
Dismissal of the Action: Upon final approval of the settlement, the Court will dismiss the lawsuit with prejudice but will retain jurisdiction to enforce the terms of the settlement.
6. How can I get a payment?
Each Class member who does not submit a valid and timely request for exclusion will automatically receive a settlement payment of $750.00. Payments will be mailed to you at your address on record. If you move before you receive any payment owed to you, please provide the Settlement Administrator with an updated address. Contact information is provided in Section 12 below.
Class Members who request to be excluded from the settlement will not receive payment.
7. When will I get my payment?
The Court will hold a hearing on November 6, 2023, at 10:00 a.m., to decide whether to approve the settlement. If the Court approves the settlement, the parties will then have to wait to see whether there is an appeal. This will take at least thirty (30) days and, if there is an appeal, can take up to a year or more to resolve. In the event of an appeal, information regarding the appeal’s progress will be posted on this website. If there is no appeal, Class Counsel expect the payment to go out within sixty-one (61) days of the Court’s approval of the settlement.
8. Do I have a lawyer in this case?
The Court has decided that lawyers from Terrell Marshall Law Group PLLC are qualified to represent you and all Class members and has approved them to do so. These lawyers are called “Class Counsel.” You will not be separately charged for these lawyers; they will be compensated for their time and reimbursed for their costs in whatever amounts are approved by the Court. If you want your own lawyer, you may hire one at your own expense. If you hire your own lawyer, you may enter an appearance through that lawyer.
9. What can I do if I don’t like the settlement?
If you don’t like the settlement, you have two options: you can choose to exclude yourself or you can choose to object.
How to Exclude Yourself:
If you exclude yourself (or “Opt Out”), you will not be paid under the Settlement Agreement. If you exclude yourself, you may not object to the settlement.
To ask to be excluded, you must do one of the following:
Fill out and submit the Opt Out form electronically by clicking HERE. You must fill out the form and submit it no later than September 22, 2023.
Email a request to be excluded to the Settlement Administrator at info@hcusettlement.com. The email must include your name, current address, and telephone number, as well as a statement clearly asking to be excluded (for example: “I want to be excluded from the settlement in Paredes Garcia v. Harborstone Credit Union.”). You must type your name at the bottom of the email and send the email no later than September 22, 2023.
Mail a written letter to the Settlement Administrator at the address provided below. The letter must include your name, current address, and telephone number, as well as a statement clearly asking to be excluded (for example: “I want to be excluded from the settlement in Paredes Garcia v. Harborstone Credit Union.”). The letter must be signed by you and postmarked no later than September 22, 2023.
How to Object to the Settlement:
If you wish to object, you must submit a written letter to the Settlement Administrator by mail or as an email attachment. The letter must include (1) your name, address, and telephone number; (2) the name of the case, Paredes Garcia v. Harborstone Credit Union, Civil Case No. 3:21‐cv‐5148‐LK; (3) the reasons why you think the Court should not approve the settlement; (4) any supporting documentation you wish the Court to consider; and (5) your signature.
Mail: If you choose to mail the objection letter, it must be postmarked no later than September 22, 2023.
Email: If you choose to email the objection letter, you must scan or take a photo of the signed letter and attach it to the email, along with any supporting documentation, and email it to the address below no later than September 22, 2023.
If the settlement is approved, you will still receive a payment under the settlement.
The Settlement Administrator is Simpluris. You can mail exclusion requests or objections to Simpluris at the following address:
Paredes Garcia v. Harborstone Credit Union
c/o Settlement Administrator
PO Box 25226
Santa Ana, CA 92799-9966
You can email exclusion requests or objection letters and supporting documents to the following email address:info@hcusettlement.com.
10. When and where will the Court decide whether to approve the settlement?
The Court will hold a Fairness Hearing at 10:00 a.m. on November 6, 2023, in the courtroom of:
The Honorable Lauren King
United States Courthouse
700 Stewart Street
Seattle, WA 98101-9906
At this hearing, the Court will consider whether the settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them. You and/or your personal attorney may attend the hearing if you wish, but it is not required.
Please note that depending on conditions and closures at the courthouse related to COVID-19, the Court may hold the Fairness Hearing via telephone or videoconference. Please check this website for additional information before the date of the hearing.
11. How do I get more information?
More details and a full copy of the Settlement Agreement is available by clicking HERE. You will also find certain filings made in the lawsuit, including Plaintiff’s motion for final approval of the Settlement Agreement in the Case Documents section of this website, which will be posted no later than August 25, 2023. This motion will include Class Counsel’s request for settlement administration expenses, a service award for the named Plaintiff, and attorneys’ fees and costs. You may also get more information by contacting Class Counsel.
The lawyers representing the Class are:
Toby J. Marshall and Eric R. Nusser
TERRELL MARSHALL LAW GROUP PLLC
936 North 34th Street, Suite 300
Seattle, Washington 98103
Phone: (855) 349-7023
Email: classactions@terrellmarshall.com
12. What is the contact information for the Settlement Administrator?
Paredes Garcia v. Harborstone Credit Union
c/o Settlement Administrator
PO Box 25226
Santa Ana, CA 92799-9966
Phone: 888-836-1292
Email: info@hcusettlement.com