Schwartz Settlement

WRRSV is pleased to announce a $4 million class action settlement in Schwartz , et al. v. Wachovia Equity Servicing, LLC, et al., Case No. 00 CV226639 (Mo. Cir.)Wachovia Equity Servicing, LLC and The Money Store, LLC have agreed to pay $4 million to settle the claims of 81 class members who obtained 52 second mortgage loans secured by Missouri residential real estate from Bann-Cor Mortgage on or after October 31, 1994. Bann-Cor Mortgage sold and assigned these 52 loans to TMS Mortgage, Inc., doing business as The Money Store. Class Members who do not opt out of the Settlement will be entitled to a substantial settlement payment under the Settlement. The estimated settlement payments range from a low of $6,737 to a high of $82,069, with an average of $32,458 per loan.

 

The amount of the settlement payment to which a class member is entitled is the sum of the (a) the illegal fees at issue in the case, (b) the interest paid on the loan (c) 9% interest on the illegal fees and interest paid through May 11, 2009 plus (d) a pro rata share of the “Common Fund Recovery” as defined in the Agreement. The class members will receive all their actual damages plus 65% ($499,828) of the estimated Common Fund Recovery ($768,968). To access the Agreement, click here.

 

Class Members can see what we currently estimate the amount of their settlement payment to be by accessing the Proposed Distribution Schedule. To access the Proposed Distribution Schedule for your settlement benefit, click here.

 

July 6, 2009 – Judge Torrance issued an Order Finally Approving the Class Action Settlement and Certifying a Class for Settlement Purposes and a Final Judgement. Please refer to the “Important Dates and Deadlines” link on the Schwartz Settlement page for information on when settlement checks will be mailed out. Click here to see the Order

 

August 25, 2009 – Great News! Settlement distribution checks have been mailed. If you have filed a Chapter 7 Bankruptcy, your check has been mailed to your Chapter 7 Trustee and you should contact your trustee regarding the distribution of your check.

 

Links to Settlement Documents

• Proposed Distribution Schedule (to see your estimated Settlement Benefit)
• Important Deadlines and Dates (05-12-2009)
• Settlement Agreement (05-11-2009)
• Order Preliminarily Approving the Class Action Settlement (05-11-2009)
• Class Notice (05-11-2009)
• Plaintiffs Motion for Preliminary Approval of Class Action Settlement (05-11-2009)
• Suggestions in Support of Plaintiffs’ Motion for Preliminary Approval of Class Action Settlement (05-11-2009)

 

Links to Other Pleadings, Orders, Reports and Documents

• Fifth Amended Petition (12-21-07)
• Answer of Wachovia Equity Servicing, LLC to Fifth Amended Petition (2-29-08)
• Answer of The Money Store to Fifth Amended Petition (2-29-08)
• Order Certifying Class (3-25-08)
• Special Master’s Report on Plaintiffs’ Motion for Partial Summary Judgment – Violation of SMLA (04-08-2009)

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