Virginia CashCall Settlement

James Hayes et al. v. Delbert Services Corp., John Paul Reddam, and CashCall, Inc.
United States District Court, Eastern District of Virginia, Richmond Division Case No: 3:14-cv-258

Frequently Asked Questions

Following is a list of frequently asked questions about this settlement. To view the answer to a question, please click on the question from the list below. The answers to these questions will be updated periodically to reflect the current status of the settlement.

  1. What is this lawsuit about?

    James Hayes, Debera Grant, Herbert White, Leslie Grainger and Donald Hill (the “Plaintiffs” or “Class Representatives”) claim that the Defendants violated federal and Virginia law by making and collecting loans to Virginians with annual interests in excess of the 12% annual interest rate prescribed by Virginia law, and without meeting the criteria for an exception to this law. Plaintiffs alleged that Defendants violated that law, as well as other state and federal laws related to the servicing and collection of those loans.

    The Virginia Attorney General’s Office intervened in this action on behalf of the Commonwealth of Virginia.

    Defendants vigorously deny these allegations, deny any wrongdoing, and assert that the loans are legal. Defendants assert that Western Sky was the real lender for the loans, and that Virginia law does not apply to these loans.

  2. How do I know if I am affected by the Settlement?

    If you received a Notice by mail and/or email, you have been identified as a Settlement Class Member.

    You are a member of the Settlement Class and are affected by the settlement if you obtained a loan(s) from Western Sky that was subsequently purchased by WS Funding, and identified yourself as a Virginia resident in your Western Sky loan agreement(s).

    If you fall within the Settlement Class definition above, you are a Settlement Class Member unless you exclude yourself from the Settlement Class.

  3. What does the Settlement provide?

    The Defendants have agreed to take certain steps regarding Western Sky loan(s) that will benefit Settlement Class Members, pay Settlement Class Members, and stop engaging in certain conduct.

    1. Defendants will discharge, cancel, release, forgive, and adjust to zero balance any outstanding loans belonging to Settlement Class Members that Defendants currently own. If a judgment was obtained from a court in reference to a loan belonging to a Settlement Class Member, Defendants will notify the court that the judgment is satisfied. Defendants will also contact applicable credit bureaus to request removal of any credit reporting Defendants have made for Virginia Western Sky Loans.
    2. Defendants will pay $9,435,000 for the benefit of the Settlement Class, which funds will be used to make the payments to Settlement Class Members.

      A check for your portion of the Settlement Fund (approximately 40% of all interest paid over 12%), if you qualify, will be mailed to you automatically and without you having to do anything. If you did not make any payments on your Western Sky loan or if you did not make payments sufficient to repay the principal loan amount plus interest greater than at a rate of 12%, then you will not receive a cash payment. You will still receive all other benefits of this Settlement.

    3. Defendants have agreed to stop charging annual interest on consumer loans made to Virginians, either directly from a physical location in Virginia or over the Internet, with interest rates in excess of 12% The Defendants have also agreed not to sell or transfer any remaining unpaid accounts to any third party, and will provide information regarding any previously sold accounts to Class Counsel and the Attorney General.
  4. What do I have to do to receive my payment?

    Nothing. If you are entitled to a cash payment, the Settlement Administrator will mail you a check automatically approximately 60 days after the Effective Date of the Settlement or after any appeals are resolved. If no appeals are filed, settlement payments will be mailed to all eligible Class Members on September 5, 2017. The Administrator will mail the check to the same address as this Notice, so please update your address if you move. You must contact the Settlement Administrator at info@VirginiaCashCallSettlement.com or 1-855-470-8532.

  5. What am I giving up to get a benefit and stay in the Settlement Class?

    Unless you excluded yourself, you are a member of the Settlement Class, and that means that you cannot sue, continue to sue, or be part of any other lawsuit concerning the claims relating to your Western Sky loan(s). The Released Parties are: Delbert, CashCall, Inc., Mr. Reddam, Western Sky Financial, LLC, Martin A. (“Butch”) Webb, as well as their current, former and future direct and indirect parent companies, affiliates, subsidiaries, including WS Funding, agents, representatives, successors, predecessors-in-interest, and related entities and each of their respective officers, directors, employees, and insurers and assigns and all persons acting for or on their behalf.

    Staying in the Class means that you will have the right to all of the benefits, including a cash payment if you are eligible, and will also mean that you release all claims against the Released Parties arising out of or relating in any way to your Western Sky loan(s), regardless of whether such claim is known or unknown, asserted or as yet un-asserted. Staying in the Class also means that all of the Court’s orders will apply to you and legally bind you.

  6. How do I exclude myself from participation in the Settlement?

    The deadline to file a request for exclusion from this Settlement was May 1, 2017. That deadline has passed.

  7. How do I tell the Court that I do not like the Settlement?

    The deadline to file an objection to this Settlement was May 1, 2017. That deadline has passed.

  8. When and where will the Court decide whether to approve the Settlement?

    The Court held a fairness hearing on June 6, 2017. in the courtroom of Judge John A. Gibney, Jr. of the United States District Court for the Eastern District of Virginia. The Judge approved the Settlement and issued the Stipulated Final Judgment and Order, which is the agreement between Defendants and the Commonwealth of Virginia, on June 6, 2017. The Court also issued the Order Granting Motion for Final Approval of Class Action Settlement, Dismissing Claims with Prejudice, and Awarding Attorneys’ Fees, Costs, and Service Awards, which is the Order approving the terms of the Class Action Settlement Agreement. If no appeals are filed, the Effective Date of this Settlement will be July 6, 2017.

  9. Do I have a lawyer in this case?

    Yes. The Plaintiffs retained Leonard A. Bennett, Craig C. Marchiando, Thomas Domonoske, and Elizabeth W. Hanes of Consumer Litigation Associates, P.C., 763 J. Clyde Morris Blvd 1A, Newport News, VA 23601; Kristi C. Kelly, Camille A. Crandall, and Andrew J. Guzzo of Kelly & Crandall, P.L.C., 4084 University Dr., Suite 202A, Fairfax, VA, 22030; and Dale W. Pittman of the Law Offices of Dale W. Pittman, 112 W. Tabb St., #A, Petersburg, VA, 23803, to represent you and the rest of the Settlement Class. In connection with the preliminary approval of the settlement, the Court appointed these attorneys to represent you and other members of the Settlement Class. Together, the attorneys are called “Class Counsel.” These lawyers will not separately charge you for their work on the case.

  10. How will the lawyers be paid?

    The Court approved an award of attorneys’ fees and expenses, including the cost of administering the Settlement, equal to approximately 20% of the total cash amount paid by Defendants. The Court also approved a $5,000 payment to each Named Plaintiff. The Named Plaintiffs were subject to extensive discovery and made substantial contributions in the prosecution of this Lawsuit for the benefit of the Class.

  11. How do I get more information?

    More details are in the Settlement Agreement. You can read or print a copy of the Settlement Agreement and other relevant case-related documents by visiting the IMPORTANT DOCUMENTS page on this website, or by writing or calling Class Counsel at either of these addresses or telephone numbers:

    Leonard A. Bennett, Esq.
    Consumer Litigation Associates, P.C.
    763 J. Clyde Morris Blvd, Suite 1A
    Newport News, VA 23610
    len@clalegal.com
    (757) 930-3660
    Kristi Cahoon Kelly, Esq.
    KELLY & CRANDALL, PLC
    4084 University Drive, Suite 202A
    Fairfax, VA 22030
    kkelly@kellyandcrandall.com
    (703) 424-7730

    DO NOT ADDRESS ANY QUESTIONS ABOUT THE SETTLEMENT OR THE LITIGATION TO THE CLERK OF THE COURT, THE JUDGE, THE DEFENDANTS OR THE DEFENDANTS’ COUNSEL. THEY ARE NOT PERMITTED TO ANSWER YOUR QUESTIONS.