A Class Action Windfall!
I received this check in the mail for $1.42. I didn’t know who or what it was from other than that I was part of a class action settlement.
I googled “Klussman vs Cross Country Bank” and found it was a California settlement in which some firm named Klussman sued a bank for debt collecter for excessive fees and harassment. This is odd, because in recent years I’ve never received a call from a debt collector much less been harassed by one.
Obviously I haven’t make a beeline to the bank to deposit this miniscule sum, but it got me thinking. The amount of money that’s divided up and distributed is often tiny. When a class action lawsuit is initiated, why not just have the plaintants, or group that’s represented, agree that if the settlement result is under $10 per person, then the money will go to:
1: A lottery. For example instead of a million dollars being split over 600,000 people (resulting in $1.66 per person,) why not everyone agree that 100 people win $10,000? I’d give up my paltry $1.66 for the chance that myself or someone else might win 10k. And much better odds than Powerball.
or 2: A good charity that everyone can agree on. Take the whole mess and split it between the Juvenile Diabetes Foundation and the National Multiple Sclerosis Society. Certainly a reputable group could benefit from a large cash influx far more than an individual or household could benefit from $2.73. And you can write off your donation.
Agree? I’m on board.
I certainly agree — and I also think of how much the lawyers’ fees and court costs on the class action fees total, to say nothing of the expense of keeping records, cutting checks and mailing tens of thousands of $1.42 checks. All money that could be used productively.
I received one check from this class action lawsuit for $12.58.
Hey Jason. That’s cool – I wonder why you got $12 and I got a buck fifty?
I still have no idea how I’m even involved in this. But $12 at least would make me perk up a bit and think “oh I can buy a couple beers or it’ll pay for a movie.”
$1.42 doesn’t even get a bus fare now. Anyway cheers and thanks for the note!
Hi there,
I also got this check for 1.42. I just tossed it in with some other checks with a recent deposit. The check was returned! My bank charged me $12 for the returned check fee. I’m raking the internet to find contact info for someone at Cross Country or Applied Card Services. Can you forward me your photo of the check you got? The photocopy of the check I deposited in my bank is so illegible that I can’t tell if there are any notices or contact info on the check.
I had credit with a local store that I believe was sold to Cross Country bank, hence my inclusion in the lawsuit. You may have had an account handled by them, but not be aware of it.
Thanks for your help!
Hi Rachael. That really stinks – I hope the cashing of my $1.42 didn’t deplete all of their assets.
I compressed the photo and didn’t save the original, but you’re welcome to right click/save and zooom in to see if you can catch the bank name. That would be the same photo I would be able to send.
Also the link i posted is to the law firm’s site (and this case info,) so you might try them for any pointers.
http://www.millslawfirm.com/trackrecord-26.html
All the best – James…
I deposited my check for $1.42 which Klussman refused to pay. Klussman voided the check, unbeknownst to me. My credit union charged ME $20.00 for the returned check! I feel scammed by Klussman AND by my credit union.
I have no way to reach Klussman, so my only recourse is to fight this with my credit union. All over a stupid check for $1.42.
Hi Lorrie. Sorry for the delay in my response. Your story is just like Rachaels (above comment.)
That’s ridiculous. If we all knew it would bounce we probably would have just thrown the stupid check away.
When I have some time I’ll send my link to the original law firm and also the Consumerist.
Something so trivial shouldn’t cause so much annoyance.
take care