Notices

Wells v. McDonough, et al

NOTICE OF PENDENCY OF CLASS ACTION

TO: All persons who satisfy the following criteria: (a) their addresses are in Illinois, according to the records of NPC Check Services, Inc. ("NPCCS"); (b) they were sent a letter in the form represented by Exhibit A; (c) the letter was not returned by the United States Postal Service; (d) the debt can be determined to be a consumer debt from the transaction documents or the nature of the debt; and (e) the letter was sent on or after May 2, 1996.

PLEASE READ THIS NOTICE CAREFULLY.

THIS IS NOT AN ATTEMPT TO COLLECT MONEY FROM YOU. THIS IS NOT A NOTICE OF A LAWSUIT AGAINST YOU. YOU MAY BENEFIT FROM READING THIS NOTICE.

WHY YOU ARE RECEIVING THIS NOTICE

You are receiving this notice because you are or may be a member of the class in a class action lawsuit. The lawsuit was filed against Thomas McDonough ("McDonough"), NPC Check Services, Inc. ("NPCCS") and National City Corporation ("NCC") (collectively "defendants") in the United States District Court for the Northern District of Illinois and is styled Wells v. McDonough et al., No. 97 C 3288. This notice explains the nature of the lawsuit, and informs you of your legal rights and obligations.

WHAT THIS LAWSUIT IS ABOUT

In this lawsuit, Victor Wells ("plaintiff") alleges that defendants violated the Fair Debt Collection Practices Act ("FDCPA"), 15 U.S.C. 1692 et seq., by sending a collection letter (attached hereto as Exhibit A) which: (1) purports to come from McDonough, a New Jersey attorney, who had no involvement in the matter; (2) states that plaintiff may be in violation of the Illinois bad check statute, when in fact no violation could have occurred; and (3) contradicts and overshadows the FDCPA's 30 day validation notice by urging plaintiff to pay his consumer debt immediately. Defendants deny these allegations and contest that they are liable to plaintiff and any member of the class.

Under the FDCPA, if defendants are found liable for the violations alleged, plaintiff will be entitled to recover statutory damages, as the court may allow, up to a maximum of $1,000. Class members will be entitled to recover their proportional share of statutory damages, as the court may allow, where the total amount of statutory damages available to the class is the lesser of $500,000 or 1% of defendants' net worth.

If you filed a separate and independent action, and you were successful, you would be entitled to recover actual damages, if any, plus statutory damages, as the court may allow, up to a maximum of $1,000, plus attorney's fees and costs, which may be significantly more than what you may recover as a class member. If you want to consider filing your own individual claim, you should seek the advice of an attorney prior to the expiration of the opt-out period.

Defendants deny that they have violated any law and deny liability to the class.

On March 12, 1999, the Court granted defendant NCC's motion for Summary Judgment, finding that NCC was not a debt collector subject to the FDCPA, and entered judgment in favor of NCC. The remaining portions of this case are still pending and the Court has made no further rulings as to the merits of this case to date.

WHO IS IN THE CLASS

On March 23, 1998, the Court certified this case as a class action with the class defined as all persons who satisfy the following criteria:

(a) their addresses are in Illinois, according to the records of NPC Check Services, Inc. (NPCCS); (b) they were sent a letter

in the form represented by Exhibit A; (c) the letter was not returned by the United States Postal Service; (d) the debt can be determined to be a consumer debt from the transaction documents or the nature of the debt; and (e) the letter was sent on or after May 2, 1996.

The Court further certified a subclass consisting of all class members for whom defendants' records do not contain proof of service of a demand by certified mail.

To be a member of the class, you must meet all of the criteria listed above. If you do not meet the class definition, this notice does not apply to you. If you are uncertain whether you are a class member, contact counsel for the class or your own attorney.

YOUR OPTIONS

You have the choice of staying in the class or excluding yourself from the class. Each choice has certain risks and consequences. You have the right to discuss your decision with class counsel or your own attorney.

I. If you stay in the class, you will be bound by the result of this lawsuit, whether that result is favorable or unfavorable. You will receive a benefit if the Court determines that defendants violated the law and must pay damages. If defendants win, you will be bound by the judgment and your claims will be extinguished. However, you will not have to pay any money as a result of staying in the class.

As a class member you will be represented by class counsel. That representation by class counsel is entirely contingent --

that is, class counsel are paid only if they win the case and you need not pay them anything if they are not successful.

If you exclude yourself from the class, you (a) will not be bound by any judgment or disposition of this case, (b) will retain any claims you may have against defendants and (c) will not share in any recovery awarded by the Court or under any settlement with defendants.

If you wish to exclude yourself, send Edelman & Combs (below address) a letter containing the name and number of this case, your name and address and state that you wish to be excluded. The letter must be received on or before August 16, 1999. If you mail a request for exclusion, you bear the risk of any problem with the mails.

If you elect to be excluded from the class, you may file an individual action (or intervene in this action). If you intend to choose this option, consult with an attorney prior to the expiration of the opt-out period. Any statute of limitations which may have stopped running on May 2, 1997 when this action was filed, will begin running again upon your filing of the exclusion. You will have the same number of days to file suit as you had on May 2, 1997. If you want your own lawyer to represent you in an individual case, the terms of such representation are a matter for you and your lawyer to negotiate.

You also have the right to file an appearance yourself or through an attorney.

CORRECT ADDRESS

If this Notice was sent to you at your current address, you do not have to do anything further to receive any further notices concerning this case. If it was forwarded by the postal service, or if it was otherwise sent to you at an address which is not current, you should immediately send a letter to Edelman & Combs (below address) stating your past and current addresses.

The attorneys for plaintiff and the class are:

Daniel A. Edelman
Cathleen M. Combs
James O. Latturner
Jeffrey S. Sell
EDELMAN & COMBS
135 S. LaSalle Street, Suite 2040
Chicago, IL 60603
(312) 917-4504

AVAILABILITY OF FILED PLEADINGS

All papers filed in this case are available for you to inspect and copy at the office of the Clerk of the United States District Court for the Northern District of Illinois, 219 South Dearborn Street, Chicago, Illinois 60604, during regular business hours.

INQUIRIES

Any questions you may have concerning this notice should be directed to Edelman & Combs. Please include the case name and number, your name and your return address on any letters, not just the envelopes.

DO NOT ADDRESS ANY QUESTIONS ABOUT THE CASE TO THE CLERK OF THE COURT OR TO THE JUDGE.

They are not permitted to answer your questions.

Copyright 1999, Edelman, Combs & Latturner