If you were a customer of Financial Education Services (FES) or participated in their credit repair programs, you may be eligible for a cash payment from a recent class action settlement. The case, known as Boivin v. Financial Education Services, Inc., has reached a resolution that provides millions of dollars in relief to affected consumers.
This settlement addresses allegations that the company operated in violation of federal and state laws regarding credit repair organizations and consumer protection. By understanding the eligibility requirements and the steps needed to submit a claim, you can ensure you receive your share of the settlement fund.
What Is the Boivin v. FES Settlement?
The Boivin v. FES settlement is the result of a legal battle involving Financial Education Services, Inc., United Financial Services, Inc., and several individual defendants. The plaintiffs in the case alleged that the defendants engaged in deceptive practices and operated an illegal credit repair business.
Specifically, the lawsuit claimed that FES violated the Credit Repair Organizations Act (CROA) and various state consumer protection statutes. These violations often involved charging upfront fees for credit repair services before the services were fully performed, which is strictly prohibited under federal law.
While the defendants deny any wrongdoing and maintain that their business practices were legal, they have agreed to a settlement to avoid the costs and uncertainty of continued litigation. This agreement establishes a settlement fund of approximately $12 million to pay eligible class members.
Who Is Eligible for a Payment?
To receive a payment from this settlement, you must fall within the defined “Settlement Class.” Eligibility is generally determined by whether you purchased certain services or products from FES within a specific timeframe.
The Class Period
The settlement typically covers individuals who were customers or participants in FES programs between December 30, 2017, and the date the court granted preliminary approval for the settlement. If you paid for the FES Protection Plan or other credit-related services during this window, you are likely a class member.
Exclusions from the Class
Not everyone associated with FES is eligible for a payment. Generally, the following groups are excluded from the settlement class:
- Officers, directors, or employees of the defendant companies.
- The legal counsel representing the defendants or the plaintiffs.
- Judges and court staff involved in presiding over the case.
- Individuals who have already reached a separate legal settlement with FES regarding these specific claims.
How to File a Claim for Your Refund
Filing a claim is the most important step in receiving your portion of the settlement fund. If you do not file a valid claim by the deadline, you will not receive a payment, and you will give up your right to sue the defendants in the future regarding these legal issues.
Step 1: Locate Your Notice and Claim ID
Many eligible class members were sent a notice via mail or email. This notice contains a unique Claim ID and PIN. Having this information makes the online filing process much faster, as it automatically links your records to the settlement database.
Step 2: Access the Official Settlement Portal
You must visit the official settlement website to submit your claim electronically. This is the most efficient way to ensure your information is recorded correctly. If you did not receive a notice but believe you are eligible, you can still submit a claim by providing your personal contact information and details about your FES account.
Step 3: Provide Required Information
The claim form will ask for basic information, including your name, current mailing address, and email address. You may also need to confirm that you paid for FES services during the eligible class period. In some cases, you might be asked to provide documentation, such as receipts or bank statements, though many claims can be verified through the company’s internal records.
Step 4: Choose Your Payment Method
The settlement administrator often provides multiple options for receiving your payment. You can typically choose between a physical check mailed to your address or an electronic payment via platforms like PayPal, Venmo, or a digital Mastercard. Ensure your contact information is accurate to avoid delays in receiving your funds.
Understanding the Potential Payouts
The amount of money each class member receives depends on several factors. Because this is a “pro rata” settlement, the individual payment amounts are not fixed until all claims are processed.
The total settlement fund is first used to pay for administrative costs, legal fees, and incentive awards for the lead plaintiffs. The remaining balance is then divided among all class members who submitted valid claims. The more people who file claims, the smaller the individual payments may be. Conversely, if fewer people file, the individual amounts could be higher.
Historically, in cases involving credit repair organizations, payments can range from a partial refund of fees paid to a more significant statutory amount, depending on the specific terms of the agreement and the total number of participants.
Important Deadlines and Dates
In any class action settlement, timing is critical. There are three major deadlines you should be aware of to protect your rights.
- Claim Deadline: This is the final date to submit your claim form. Claims submitted after this date will be rejected.
- Exclusion Deadline: If you wish to sue the defendants on your own, you must “opt out” or exclude yourself by this date. If you opt out, you will not receive any money from this settlement.
- Objection Deadline: If you disagree with the terms of the settlement, such as the amount of attorney fees or the distribution plan, you must file a formal objection with the court by this date.
After these deadlines pass, the court will hold a Final Fairness Hearing. During this hearing, the judge will decide whether the settlement is fair, reasonable, and adequate. If approved, the settlement administrator will begin processing claims and distributing payments.
Your Rights and Options
When you are notified of a class action settlement, you generally have four options. It is important to choose the one that best fits your situation.
1. Submit a Claim Form
This is the only way to get a cash payment. By doing this, you agree to the terms of the settlement and give up your right to bring a separate lawsuit against FES for the claims covered in the case.
2. Do Nothing
If you do nothing, you will not receive a payment. You will still be bound by the settlement, meaning you cannot sue the defendants for these specific issues in the future. This is generally the least beneficial option for consumers.
3. Exclude Yourself (Opt-Out)
If you want to maintain your right to file an individual lawsuit against FES, you must formally request exclusion. You will not get any money from the settlement fund if you choose this path.
4. Object to the Settlement
If you stay in the settlement class but believe the deal is unfair, you can write to the court to explain why. You can still file a claim for money even if you object, provided the court ultimately approves the settlement.
Frequently Asked Questions
When will I receive my check?
Payments are typically distributed after the court grants final approval and any potential appeals are resolved. This process can take several months or even over a year after the claim deadline has passed. Patience is necessary during the administrative phase.
What if I moved since I used FES?
If your address has changed, you should update your information on the settlement website or contact the claims administrator. This ensures that your check or notification reaches you at the correct location.
Do I need a lawyer to file a claim?
No, you do not need to hire your own lawyer. The class members are represented by “Class Counsel,” whose fees are paid out of the settlement fund. Filing a claim is designed to be a simple process that consumers can handle on their own.
Conclusion
The Boivin v. FES settlement represents a significant opportunity for consumers to recover funds spent on credit repair services that may have been marketed or managed improperly. By taking a few minutes to fill out the claim form, you can ensure your voice is heard and your financial interests are protected.
Be sure to keep a copy of your claim confirmation for your records and monitor your email for updates from the settlement administrator. If you found this guide helpful, consider exploring our other articles on consumer rights and recent legal settlements to stay informed about your options in the digital economy.