UNITED STATES DISTRICT COURT
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SOUTHERN DISTRICT OF TEXAS
If you received a collection letter on your student loan in a U.S. Department of Education envelope from GC Services, L.P., DLS Enterprises, Inc. or GC Financial Corporation between January 1, 2000 and July 31, 2000, you could get a payment from a class action settlement.
The Federal Court authorized this Notice. It is not from a lawyer. You are not being sued.
The Settlement resolves a lawsuit over whether people were mislead by GC Services when it sent letters to collect on student loans using U.S. Department of Education envelopes. The Settlement will provide cash payments to people with student loans who were mailed a collection letter in the form represented by Exhibits A, C, E, G, I and K attached to the Plaintiff’s Amended Complaint in a U.S. Department of Education envelope between January 1, 2000 and July 31, 2000. You must file a Proof of Claim form to be eligible for a cash payment. Your legal rights are affected whether you act or don’t act. Please read this notice carefully.
YOUR RIGHTS AND CHOICES:
YOU MAY: SUBMIT A CLAIM FORM OBJECT This is the only way for you to get a cash payment. Write to the Court about why you don’t like the Settlement. Go to the hearing on the Settlement on June 4, 2004 at 2:00p.m. Ask to get out of the Settlement. You get no payment. But you keep the right to sue the Defendants yourself about the claims in the lawsuit. Participate in the Settlement on your own or through your own lawyer. You get no payment. And you give up the right to sue the Defendants on these claims later DUE DATE Postmarked by May 3, 2004 Received by May 3, 2004 Received by May 3, 2004 Filed by May 3, 2004
EXCLUDE YOURSELF APPEAR IN THE LAWSUIT
DO NOTHING
The Court still has to decide whether to approve the Settlement. Payments will be made after the Court approves the Settlement and all appeals are ruled on. Any questions? Read on. Your rights and choices are further explained in this Notice.
WHAT THIS NOTICE CONTAINS
BASIC INFORMATION Page 1. Why did I get this Notice? ...............................................................................................3 2. What is this lawsuit about? ...............................................................................................3 3. Why is this a class action? ................................................................................................4 4. Why is there a settlement? ................................................................................................4 WHO IS IN THE SETTLEMENT Page 5. How do I know if I’m part of the settlement?...................................................................4 6. What if the person who’s included is deceased or divorced? ...........................................4 THE SETTLEMENT BENEFITS – WHAT YOU GET Page 7. What does the Settlement provide?...................................................................................4 8. Why did the lawyers for the Class decide to settle for this amount? ................................5 9. How much will I be paid? .................................................................................................5 HOW TO GET A PAYMENT – SUBMITTING A CLAIM FORM Page 10. How can I get a payment?.................................................................................................5 11. When will I get my payment? ...........................................................................................5 12. Am I giving anything up for my payment?.......................................................................6 YOUR RIGHTS – GETTING OUT OF THE SETTLEMENT Page 13. Can I get out of the Settlement or the Class? ....................................................................6 14. How do I exclude myself from the Settlement?................................................................6 15. If I exclude myself, can I object or get a payment? ..........................................................6 YOUR RIGHTS – OBJECTING TO THE SETTLEMENT Page 16. Can I tell the Court I don’t like the Settlement? ...............................................................7 17. How do I tell the Court if I don’t like the Settlement? .....................................................7 18. If I object, do I have to attend the Court’s hearing on the Settlement? ............................7 19. What’s the difference between objecting and excluding myself? .....................................7 YOUR RIGHTS – APPEARING IN THE LAWSUIT Page 20. Can I appear or speak in this lawsuit and Settlement?......................................................8 21. How do I appear in this lawsuit?.......................................................................................8 IF YOU DO NOTHING Page 22. What happens if I don’t do anything at all? ......................................................................8 THE LAWYERS REPRESENTING YOU Page 23. Do I have a lawyer in this lawsuit and Settlement? ..........................................................8 24. Who pays the lawyers, and how much will they be paid? ................................................8 25. Should I get my own lawyer? ...........................................................................................9 THE COURT’S FAIRNESS HEARING Page 26. When and where will the Court decide whether to approve the Settlement? ...................9 27. Do I have to come to the hearing? ....................................................................................9 GETTING MORE INFORMATION Page 28. How do I get more information?.......................................................................................9 2
BASIC INFORMATION
1. Why did I get this Notice? You received this Notice because records show you may have received a student loan collection letter the form represented by Exhibits A, C, E, G, I and K attached to the Plaintiff’s Amended Complaint from GC Services, mailed in an U.S. Department of Education envelope between January 1, 2000 and July 31, 2000. The Court sent you this notice because you have a right to know about a Settlement of a class action lawsuit relating to these collection letters that can affect you. You have legal rights and choices to make before the Court decides whether or not to approve the Settlement. This notice explains: • What the lawsuit is about. • Who is included in the Settlement. • How the Settlement will benefit you. • How to get the benefits. • What your legal rights are. If the address on this Notice is different than your current address, you should send a letter with your name, previous address, and current address to: Daniel A. Edelman Edelman, Combs & Latturner, LLC (6262) 120 S. LaSalle Street, Suite 1800 Chicago, IL 60603 Your letter should also include the name of the lawsuit: Civil Action No. H-00-2194; Elizabeth Peter v. GC Services, L.P., DLS Enterprises, Inc. and GC Financial Corporation; In the United States District Court, Southern District of Texas, Houston Division. Sending your current address makes sure you can receive benefits from the Settlement. 2. What is this lawsuit about? From January 1, 2000 and July 31, 2000, GC Services L.P. and its partners, DLS Enterprises, Inc. and GC Financial Corporation, mailed letters to collect debts on student loans in the form represented by Exhibits A, C, E, G, I and K attached to the Plaintiff’s Amended Complaint in envelopes containing the name and address of the U.S. Department of Education. The lawsuit claims that GC Services L.P and its partners, DLS Enterprises, Inc. and GC Financial Corporation, violated federal law by misleading people with student loans into believing they were receiving a letter about the debt from the U.S. Department of Education. The lawsuit originally claimed GC Services and it’s partners misled people into believing that the letters were from the Department of Education and also that they had less then 30 days to say their debt was valid. The court agreed that the envelopes were misleading because on the outside the letter looked like it was from the Department of Education but the letter was actually from GC Services but the court did not agree that GC Services mislead people into b elieving they had less than 30 days to dispute the debt. GC Services L.P. and its partners say they didn’t do anything wrong. The Court in charge of the lawsuit is the United States District Court for the Southern District of Texas, Houston Division. The name of the lawsuit is Civil Action No. H-00-2194; Elizabeth Peter v. GC Services, L.P., DLS Enterprises, Inc. and GC Financial Corporation; In the United States District Court, Southern District of Texas, Houston Division. The person who sued – Elizabeth Peter -- is called the Plaintiff. The companies she sued – GC Services L.P. and its partners, DLS Enterprises, Inc. and GC Financial Corporation – are called the Defendants. 3
3. Why is this a Class Action? In a class action lawsuit, one or more people called “Class Representatives” (in this case Elizabeth Peter) sue on behalf of people who have similar claims. The people together are a “Class” or “Class Members.” One court decides the lawsuit for everyone in the Class. The Court decided that this lawsuit can be a class action because there are 3,000 to 4,000 people that are affected and one lawsuit would be better than many individual lawsuits. 4. Why is there a Settlement? The Court has not decided who is right or wrong in this lawsuit. Instead, the person who sued and the Defendants agreed to a settlement. That way, they avoid the costs and risks of a trial, and all the people in the Class will get money.
WHO IS IN THE SETTLEMENT
5. How do I know if I’m part of the Settlement? You are a Class Member and part of the Settlement in this lawsuit if all of the following apply to you: • • You had (or still have) a student loan; You received one or more collection letters from GC Services, DLS Enterprises, Inc. and/or GC Financial Corporation, in the form represented by Exhibits A, C, E, G, I and K attached to the Plaintiff’s Amended Complaint that were mailed between January 1, 2000 and July 31, 2000; and The collection letter was in an envelope with the name and address of the U.S. Department of Education on it.
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6. What if the person who’s included is deceased or divorced? If the Class Member is deceased and you are the heir, or if you are divorced from the Class Member and believe you are entitled to the Settlement payment under the divorce decree, you should send a letter to the following address explaining why you are entitled to the payment: Daniel A. Edelman Edelman, Combs & Latturner, LLC (6262) 120 S. LaSalle Street, Suite 1800 Chicago, IL 60603 Your letter should include copies of any documents that show you should receive the Settlement payment, such as the death certificate or the divorce decree.
THE SETTLEMENT BENEFITS – WHAT YOU GET
7. What does the Settlement provide? The Settlement provides that the Defendants will pay $30,000.00 into a fund (the “Settlement fund”) to be paid to Class Members who submit a fully completed Proof of Claim form on or before May 3, 2004. 4
8. Why did the lawyers for the Class decide to settle for this amount? The federal law that this lawsuit claims the Defendants violated is called the Fair Debt Collection Practices Act (the “FDCPA”). The FDCPA says that in a class action, the most money the Court can award to the class is: (a) each Class Member’s “actual damages”; and, (b) a money penalty. The law also allows the award of attorneys’ fees and costs if the plaintiffs win. A person’s “actual damages” is the amount of money that person lost because of the acts of the company being sued. In this lawsuit, the lawyers for the Class did not assert that Class Members had any actual damages because of the collection letters sent in U.S. Department of Education envelopes. The biggest money penalty a court can award in this type of lawsuit is $500,000.00, or 1% of the company’s n worth, whichever amount is smaller. A company’s “net worth” is the value of the et company minus its debts. In this lawsuit, GC Services and its partners say their net worth is about $18 million, so the largest the money penalty could be is $180,000.00 (1% of $18 million). However, the amount a Court can award in this kind of case can be less than the maximum penalty, depending on what the company did, and how bad the conduct was. A Court can award anything between zero and the maximum amount. The lawyers for the Class in this lawsuit believe that considering the facts and circumstances of this lawsuit and the possible damages recoverable, a Settlement fund of $30,000.00 for Class Members is fair and reasonable. 9. How much will I be paid? The amount you will receive depends on how many people submit Proof of Claim forms. There are an estimated 3,000 to 4,000 Class Members. The Settlement fund will be divided equally among all Class Members who file Proof of Claims. For example, if 3,000 Class Members file claims, you would receive $10.00 ($30,000 divided by 3,000). If 1,000 Class Members file claims, you would receive $30.00.
HOW TO GET A PAYMENT – SUBMITTING A CLAIM FORM
10. How can I get a payment? To get a payment from the Settlement fund, you must complete and file a Proof of Claim form. The form is included with this Notice. You can also get a Proof of Claim form by writing to: Rust Consulting, Inc., P.O. Box 1701, Faribault, MN 55021-1701. Be sure to fill in all the information on the Proof of Claim form and sign it. Your completed Proof of Claim form must be mailed and postmarked on or before May 3, 2004 to: Rust Consulting, Inc. P.O. Box 1701 Faribault, MN 55021-1701 11. When will I get my payment? The Court will hold a hearing (called the “Fairness Hearing”) on 2:00 p.m. on June 4, 2004 to decide whether to approve the Settlement. The Court is located in United States District Court for the Southern District of Texas, Houston Division, United States Courthouse, Bob Casey Building Courtroom 9-D, 515 Rusk Street, Houston, Texas 77002. If the Court approves the Settlement, there may be appeals. An appeal can take many months. You will receive your payment after any appeals are resolved. Please be patient. 5
12. Am I giving anything up for my payment? Unless you get out of the Settlement (which is called “excluding yourself”), you are staying part of the Class. By staying part of the Class, all of the Court’s orders will apply to you, and you give the Defendants a “release”. A release means you can’t sue or be part of any other lawsuit against GC Services and the other Defendants about the claims or issues in this lawsuit ever again.
YOUR RIGHTS – GETTING OUT OF THE SETTLEMENT
13. Can I get out of the Settlement and the Class? You can get out of the Settlement and the Class. This is called excluding yourself. If you exclude yourself, you can’t get a payment from the Settlement fund. But, you do keep the right to file your own lawsuit or join another lawsuit against GC Services or the other Defendants about the claims in this lawsuit. 14. How do I exclude myself from the Settlement? To exclude yourself, you must send a letter that is received by the Clerk of Court on or before May 3, 2004. Your letter should include all of the following: • • • Your name and address; The name and number of the lawsuit: Civil Action No. H -00-2194; Elizabeth Peter v. GC Services, L.P., DLS Enterprises, Inc. and GC Financial Corporation; In the United States District Court, Southern District of Texas, Houston Division; and A statement that you wish to be excluded from the lawsuit and Settlement.
Your exclusion letter must be mailed to each of the following 4 places: Clerk of the Court United States District Court Bob Casey Building 515 Rusk Street Houston, TX 77002 Rust Consulting, Inc. P.O. Box 1701 Faribault, MN 55021-1701 Daniel A. Edelman Edelman, Combs & Latturner, LLC (6262) 120 S. LaSalle Street, Suite 1800 Chicago, IL 60603 Keith Wier Amy L. Mitchell Daw & Ray 5718 Westheimer, Suite 1750 Houston, TX 77057
IMPORTANT REMINDER: THE COURT REQUIRES THAT EXCLUSIONS BE RECEIVED BY M AY 3, 2004. IF YOU ARE MAILING YOUR EXCLUSION REQUEST, REMEMBER TO AFFORD E NOUGH TIME FOR IT TO GET TO THE COURT BY M AY 3, 2004. 15. If I exclude myself, can I object or get a payment? No. If you exclude yourself, you can’t get any money from the Settlement and you can’t tell the Court you don’t like the settlement (which is called “objecting”). If you exclude yourself, you’re no longer part of the Class or the Settlement. But you can sue or be part of a different lawsuit against the Defendants about the claims in this case.
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YOUR RIGHTS – OBJECTING TO THE SETTLEMENT
16. Can I tell the Court I don’t like the Settlement? If you don’t exclude yourself, you can tell the Court you don’t like the Settlement or some part of it. For example, you can say that you don’t think the Settlement is fair or adequate, or that you object to the amount of the Class lawyers’ fees. 17. How do I tell the Court if I don’t like the Settlement? To object, you must send a letter that is received by the Clerk of Court on or before May 3, 2004. Your letter should include all of the following: • • • • Your name and address; The name and number of the lawsuit: Civil Action No. H -00-2194; Elizabeth Peter v. GC Services, L.P., DLS Enterprises, Inc. and GC Financial Corporation; In the United States District Court, Southern District of Texas, Houston Division; A statement of the reasons why you believe the Settlement is not adequate or fair; and A statement of whether you (or your lawyer) wish to speak at the Court’s Fairness Hearing.
Your objection letter must be mailed to each of the following 3 places: Clerk of the Court United States District Court Bob Casey Building 515 Rusk Street Houston, TX 77002 Daniel A. Edelman Edelman, Combs & Latturner, LLC (6262) 120 S. LaSalle St, Suite 1800 Chicago, IL 60603 Keith Wier Amy L. Mitchell Daw & Ray 5718 Westheimer, Suite 1750 Houston, TX 77057
IMPORTANT REMINDER: THE COURT REQUIRES THAT OBJECTIONS BE RECEIVED BY M AY 3, 2004. IF YOU ARE MAILING YOUR OBJECTION, REMEMBER TO AFFORD ENOUGH TIME FOR IT TO GET TO THE COURT BY M AY 3, 2004. 18. If I object, do I have to attend the Court’s hearing on the Settlement? If you object, you should attend the Court’s Fairness Hearing on June 4, 2004 at 2:00 p.m. The Court is located in United States District Court for the Southern District of Texas, Houston Division, United States Courthouse, Bob Casey Building Courtroom 9-D, 515 Rusk Street, Houston, Texas 77002. The Court may decide to only consider objections from Class Members who attend the hearing. For more information on the Fairness Hearing, see Question number 25 below. 19. What’s the difference between objecting and excluding myself? Objecting is the way to tell the Court what you don’t like about the Settlement. You can object only if you stay in the Class and the Settlement. Excluding yourself is the way to tell the Court you don’t want to be a part of the Class and the Settlement, and that you want to keep the right to file your own lawsuit. If you exclude yourself, you can’t object because the Settlement doesn’t affect you any more. 7
YOUR RIGHTS – APPEARING IN THE LAWSUIT
20. Can I appear or speak in this lawsuit and Settlement? As long as you don’t exclude yourself, you can (but do not have to) participate and speak for yourself in this lawsuit and Settlement. This is called making an appearance. You can also have your own lawyer speak for you, but you will have to pay for the lawyer yourself. 21. How do I appear in this lawsuit? If you want you or your own lawyer instead of Class Counsel to participate or speak for you in this lawsuit, you must give the Court a paper that is titled a “Notice of Appearance”. If you want, your Notice of Appearance can also say you or your lawyer would like to speak at the Court’s Fairness Hearing on the Settlement. The Notice of Appearance must be filed with the Court by May 3, 2004. The address of the Court for filing a Notice of Appearance is: Clerk of the Court, United States District Court, Bob Casey Building, 515 Rusk Street, Houston, Texas 77002.
IF YOU DO NOTHING
22. What happens if I don’t do anything at all? If you do nothing, you won’t get any money from the Settlement. You must file a Proof of Claim form to get your payment. And, unless you exclude yourself from the Settlement, you won’t be able to sue, or join another lawsuit, against the Defendants about the issues and claims in this lawsuit, ever again.
THE LAWYERS REPRESENTING YOU
23. Do I have a lawyer in this lawsuit and Settlement? Yes. The Court asked Daniel Edelman of the law firm Edelman, Combs & Latturner, LLC to represent you and other Class Members. They are called Class Counsel. You won’t be charged for these lawyers. More information about Class Counsel’s law firm and their experience is available at their website, www.edcombs.com. 24. Who pays the lawyers and how much will they be paid? Class Counsel will ask the Court to approve the payment of $150,000.00 for attorneys’ costs. They will also ask the Court to approve the payment of $2,000.00 to the Elizabeth Peter, for her services as Class Representative. The Defendants will pay the that the Court approves. Payments from the Settlement fund will not be reduced by the of Class Counsels’ attorneys’ fees and costs. fees and Plaintiff, amounts payment
The Defendants will also pay of costs of giving notice of the Settlement to Class Members and administering the claims of Class Members.
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25. Should I get my own lawyer? You don’t need to hire your own lawyer because Class Counsel works for you. But, if you want your own lawyer to speak for you or appear in Court, you will have to pay that lawyer yourself.
THE COURT’S FAIRNESS HEARING
26. When and where will the Court decide whether to approve the Settlement? The Court will hold a Fairness Hearing to decide whether to approve the Settlement at 2:00 p.m. on June 4, 2004. The Court is located in United States District Court for the Southern District of Texas, Houston Division, United States Courthouse, Bob Casey Building Courtroom 9-D, 515 Rusk Street, Houston, Texas 77002. At the Fairness Hearing, the Court will consider the objections of persons who attend the hearing, and will consider whether the Settlement is fair and adequate. The Judge will listen to people who have asked to speak at the hearing. The Court may also decide how much to pay to Class Counsel. After the hearing, the Court will decide whether to approve the Settlement. 27. Do I have to come to the hearing? You don’t have to come to the Fairness Hearing. Class Counsel will answer questions the Court has. But you (or your lawyer) are welcome to come at your own expense. You should come to the Fairness Hearing if: (a) you have submitted an objection to the Settlement and you want the Court to consider it; or (b) you have filed a Notice of Appearance and you have asked the Court to allow you or your lawyer to speak at the hearing.
GETTING MORE INFORMATION
28. How do I get more information? This Notice summarizes the Settlement. More details are in the Settlement Agreement. You can read the Settlement Agreement and any of the other documents filed in this lawsuit during regular business hours, at the office of the Clerk of the Court, United States Courthouse, Bob Casey Building, 515 Rusk Street, Houston, Texas 77002. If you want copies of any of the documents, you will have to pay for the copies yourself. You can also get more information by calling, faxing, writing or sending an email to Class Counsel as follows: • • • • Through the internet by visiting Class Counsel’s website at www.edcombs.com, or sending an email to edcombs@aol.com. By mail to: Daniel A. Edelman and Heather Piccirilli, Edelman, Combs & Latturner (6262), 120 S. LaSalle Street, Suite 1800, Chicago, IL 60603. By fax to 1-312-419-0379. By calling 1-800-644-4673 or 1-312-739-4200.
Please include your name, your current return address, the case name, and the case number on any letters, emails or faxes. 9
PROOF OF CLAIM
RE: Civil Action No. H-00-2194; Elizabeth Peter v. GC Services, L.P., DLS Enterprises, Inc. and GC Financial Corporation; In the United States District Court, Southern District of Texas, Houston Division IMPORTANT: THIS CLAIM FORM MUST BE POSTMARKED ON OR BEFORE MAY 3, 2004, AND MAILED TO THE FOLLOWING ADDRESS: Rust Consulting, Inc. P.O. Box 1701 Faribault, MN 55021-1701. Please LEGIBLY PRINT the following information: NAME: SOCIAL SECURITY NO. ADDRESS: CITY/STATE: ZIP CODE: ________________________________________ ________________________________________ ________________________________________ ________________________________________ ________________________________________
NOTE: IF YOUR CURRENT NAME IS DIFFERENT THAN THE NAME YOU USED WHEN YOU RECEIVED A COLLECTION LETTER FROM., GC SERVICES, L.P., DLS ENTERPRISES, INC. AND/OR GC FINANCIAL CORPORATION PRINT THE NAME YOU USED HERE: _________________________________________
_______________________________________________ (YOUR SIGNATURE)
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