Hughes Federal Credit Union $7M Repossession Class Action Settlement

Hughes Federal Credit Union (HFCU) has agreed to a settlement that puts $7 million into a cash fund, asks the credit bureaus to delete the loans from credit files, and resolves about $25.6 million in disputed car-loan balances for Arizona borrowers whose vehicles it repossessed.

The lawsuit claims the credit union sent defective notices after repossessing cars. HFCU denies doing anything wrong, and the court has not decided who is right.

Official settlement website: https://www.harrisonreposettlement.com/ Claim form: None. If you received a notice and the court gives final approval, eligible members are paid automatically.

But there are real decisions in this one, and the deadline for them is November 20, 2026. The final approval hearing is December 7, 2026.

Quick Facts

Item	Detail
Case	Dametrius Harrison and Vicki Jo Hines Norton v. Hughes Federal Credit Union
Case Number	C20232230
Court	Superior Court of Arizona, Pima County (Hon. Greg Sakall)
Settlement Fund	$7,000,000
Claimed Deficiencies Resolved	About $25,603,000 (HFCU’s figure; disputed)
Estimated Average Check	About $1,067 (an estimate, not a guarantee)
Who Is Covered	Arizona borrowers whose financed vehicle HFCU repossessed between May 18, 2019 and August 4, 2023
Claim Form	None; eligible members are paid automatically after final approval
Opt-Out, Objection and Deficiency-Election Deadline	November 20, 2026 (postmarked)
Final Approval Hearing	December 7, 2026, 10:00 a.m.
Official Settlement Website	https://www.harrisonreposettlement.com/
Administrator Phone / Mail	1-866-473-1092; Harrison v HFCU, c/o Settlement Administrator, P.O. Box 23648, Jacksonville, FL 32241
Class Counsel Phone	1-888-668-1225
Admission of Wrongdoing	None; HFCU denies the claims

What the Lawsuit Says HFCU Did Wrong

Dametrius Harrison and Vicki Jo Hines Norton allege that HFCU violated Arizona law in the notices it sent borrowers after repossessing their vehicles. They asked for statutory damages for themselves and everyone in the same position. The public settlement documents do not spell out which specific notice defects are alleged.

Why this matters: when a lender repossesses a car, state law requires certain notices to the borrower. A lender that gets them wrong can lose the right to collect the remaining balance, called a deficiency, and can owe the borrower statutory damages. That is why this settlement includes both money and debt relief.

HFCU denies all of it. It argued the case should not proceed as a class action but agreed not to oppose class treatment for settlement purposes only. The settlement also resolves a related case, the Norton litigation.

The Arizona Law Behind the Case

The repossession rules for consumer car loans come from Article 9 of Arizona’s Uniform Commercial Code (A.R.S. § 47-9101 et seq.), which follows the national UCC model. In general terms:

• Notice before sale. A secured lender that plans to sell a repossessed vehicle must send the borrower a notification of the disposition, with specific content in consumer cases (A.R.S. §§ 47-9611 and 47-9614 under the UCC model).
• Right to redeem. The borrower can generally redeem the vehicle before it is sold by paying the full obligation and the lender’s expenses (§ 47-9623).
• Explanation of a deficiency. When a lender claims the borrower still owes a balance after the sale, it must send a written explanation of how the amount was calculated (§ 47-9616).
• Remedies for violations. A lender that fails to comply can be liable for actual damages and, in consumer-goods transactions, statutory damages equal to at least the credit service charge plus 10% of the principal amount of the obligation (§ 47-9625).

That last rule explains the settlement formula. The settlement divides the fund based on each borrower’s finance charge and amount financed, and the agreement estimates payments at about 14.69% of full statutory damages. These are summaries of the general legal framework to help readers understand the case. The exact statutory counts alleged are in the complaint and settlement documents.

A lender that violates these rules can also lose the ability to collect the deficiency, which is why the case is also about the roughly $25.6 million in claimed balances.

Who Qualifies

You are in the settlement class if all of the following are true:

• You financed a vehicle for consumer use through Hughes, or financed it elsewhere and the loan was later assigned to HFCU
• The vehicle was pledged as collateral for the loan
• HFCU repossessed the vehicle or ordered it repossessed
• You had an Arizona address on the date of repossession
• The repossession happened between May 18, 2019 and August 4, 2023

HFCU’s records identify class members, and the administrator is mailing notice to them. If you received the notice package, HFCU’s records indicate you may be in the class. A document attached to the settlement agreement says HFCU’s records show 3,815 loans, some with co-borrowers, covering 4,548 borrowers. That figure comes from the proposed preliminary approval order, and the entered order has not been confirmed.

If you live outside Arizona now: what counts is whether you had an Arizona address on the date of the repossession, not where you live today. If you have moved, update your address with the administrator.

Related article: GM Class Action Claims 2025 Chevy Traverse and Four Other Models Have Faulty Brake Master Cylinders

What You Get

1. Cash from the $7 million fund

After administration costs, attorneys’ fees, expenses and service awards come out, the remainder (the net fund) is split pro rata among eligible class members, based on each person’s finance charge and amount financed on each loan. Using illustrative deductions, the agreement estimates payments of roughly 14.69% of full statutory damages, with an average check of about $1,067. Your own amount may differ.

To look up your estimate, use the Estimated Award Eligibility page on the settlement website with the Notice ID and PIN from your mailed notice.

If more than $150,000 remains after the first round of checks because of uncashed or undeliverable ones, there will be a second distribution. Anything left after that goes to charity. The proposed final order attached to the agreement names Angel Charities and the Arizona Foundation for Legal Services and Education, split 50/50, but the court has to approve that.

Payment is by check unless you request another method through the Select Payment Method page on the website.

2. Credit report deletion requests

Within 60 days after the settlement’s effective date, HFCU will ask the credit reporting agencies to delete the trade lines for these auto loans and deficiencies. The key word is “ask.” The credit bureaus are separate companies, and the agreement spells out the limits of HFCU’s obligation if a bureau does not delete the entry.

If an entry stays on your report, you can also dispute it directly with the bureaus under the Fair Credit Reporting Act (15 U.S.C. § 1681i). The settlement does not replace that right.

3. Elimination of disputed deficiency balances

HFCU says the total claimed deficiencies come to about $25.6 million. The parties dispute whether HFCU is entitled to them. Unless you decline the compromise, the settlement resolves your claimed deficiency through accord and satisfaction. In plain terms, the disputed balance is settled and you are not pursued for it. This does not cover certain claims where a borrower reinstated the loan and got the vehicle back before auction.

For example: if a borrower owed $15,000 when the car was repossessed and the car sold for $9,000, a lender might claim a $6,000 deficiency. Under this settlement, that claimed amount would be resolved rather than collected.

That $25.6 million is what HFCU says it claimed, and it is disputed. It is not cash going into anyone’s pocket.

Do You Have to File a Claim?

No. If the court gives final approval and you do not opt out, you automatically receive any cash payment you are eligible for and the credit reporting request. If you move, update your address using the website’s Update Address page (you will need your Notice ID and PIN) or by email or mail.

If you need to submit a name change (marriage, divorce or court order) or a payment on behalf of a deceased class member, the administrator requires supporting documents such as a marriage license, divorce decree or court order, or a death certificate plus proof of the legal beneficiary. Instructions are on the FAQ page. Do not pay anyone to file a claim for you. There is no claim form.

Your Options Before the November 20, 2026 Deadline

Option	What It Does	Deadline
Do nothing	You stay in the class, get any payment and the credit reporting request, and your claimed deficiency is resolved through the settlement. You give up the right to sue HFCU over the settled claims.	None
Exclude yourself (opt out)	You get no cash, no credit reporting relief and no deficiency relief, but you keep any right to sue HFCU over the claims being settled.	Postmarked by Nov. 20, 2026
Decline the deficiency compromise only	You stay in the class and keep the cash and credit reporting benefits, but your claimed deficiency is not compromised. Use the Election Not to Accept Compromise of Disputed Deficiency Balance form that came with your notice.	Postmarked by Nov. 20, 2026
Object	You stay in the class and tell the court what you dislike about the settlement.	Filed and postmarked by Nov. 20, 2026
Attend or speak at the hearing	You do not have to attend. To speak, file a Notice of Intention to Appear. You cannot speak if you opt out.	Per the notice

The deficiency election is the decision most worth thinking about. The documents explain what the election does for the settlement, but they do not tell you what HFCU could do about a deficiency you refuse to compromise. If you have a large claimed balance and are considering declining, talk to a licensed attorney before the deadline.

How to opt out

Mail a signed written request to the administrator with your full name, current address, telephone number, and a statement that you want to be excluded from the settlement in Harrison v. Hughes Federal Credit Union, Case No. C20232230. No one can opt out for someone else or for a group. Opting out is different from objecting, and you cannot do both.

How to object

File a written Notice of Objection with the court and mail copies to the administrator, class counsel and defense counsel, postmarked by November 20, 2026. It must include the information required by the settlement documents, including your name, address, telephone number, email if available, the last four digits of your Social Security number, each objection with its supporting facts and documents, whether you intend to appear, any attorney or expert information, and a signed declaration under penalty of perjury. The full list and the addresses are on the settlement website. Arizona’s class action rule, Rule 23 of the Arizona Rules of Civil Procedure, requires the court to find a settlement fair, reasonable and adequate before approving it.

Attorneys’ Fees and Service Awards

Class counsel will ask the court to approve:

• Attorneys’ fees of up to $2,800,000
• Expenses of up to $50,000
• Service awards of $15,000 each to Dametrius Harrison and Vicki Jo Hines Norton

All of it comes out of the $7 million fund, and the court may award less. Class counsel are Cary L. Flitter, Andrew M. Milz, Jody T. López-Jacobs and Edward Flitter of Flitter Milz, P.C., and Mark Rubin of Rubin & Bernstein PLLC. HFCU is represented by Bradley E. Faber of Gordon Rees Scully Mansukhani, LLP. Class members do not pay these lawyers separately.

Tax Consequences

Possibly. The administrator will issue a Form 1099-series document for cash distributions over $2,000 if one is required. The agreement treats the reduction of claimed deficiencies to zero as the result of a good-faith contested liability, and HFCU says it will not issue 1099s for deficiencies unless an agreed accounting firm concludes it must. Canceled debt can sometimes be taxable income under federal tax law (26 U.S.C. § 61(a)(11)), subject to exclusions, so ask a tax professional about your own situation.

When Will Payments Go Out?

No payment date has been announced. Payments depend on the court granting final approval on or after December 7, 2026, and on the settlement’s effective date, which is tied to the approval order and the time for appeals. If someone appeals, payment can be delayed. Checks are not likely before then, and nothing is mailed on the hearing date itself.

Key Dates

Date	Event
May 18, 2019 to August 4, 2023	Class period for repossessions
November 20, 2026	Deadline to opt out, object or submit the deficiency election (postmarked)
December 7, 2026, 10:00 a.m.	Final approval hearing, Pima County Superior Court
After final approval and any appeals	Effective date; payments follow
60 days after the effective date	HFCU must request credit report deletions

Frequently Asked Questions

Who can get money from the settlement?

Arizona borrowers who financed a vehicle for consumer use through HFCU, or whose loan was assigned to HFCU, and whose vehicle HFCU repossessed or ordered repossessed between May 18, 2019 and August 4, 2023.

How much will I get?

The estimated average check is about $1,067, but your amount depends on your finance charge and the amount financed. Check the Estimated Award Eligibility page with your Notice ID and PIN.

Do I need to file a claim form?

No. Eligible class members who do not opt out are paid automatically after final approval.

What happens to the car loan balance HFCU says I owe?

Unless you submit the Election Not to Accept Compromise of Disputed Deficiency Balance by November 20, 2026, your claimed deficiency is resolved through the settlement.

Will the settlement fix my credit report?

HFCU will ask the credit bureaus to delete these loans and deficiencies, but the bureaus decide. The agreement describes HFCU’s limits if a bureau refuses. You can also dispute entries yourself.

What if I do not want to be part of the settlement?

Mail a written exclusion request postmarked by November 20, 2026. You give up the money and other benefits but keep your right to sue.

Can I keep the money but decline the deficiency compromise?

Yes. Submit the election form by November 20, 2026. You stay in the class with cash and credit reporting benefits, but your claimed deficiency is not compromised.

When will payments be sent?

Not until after the December 7, 2026, final approval hearing, the court’s approval, and the resolution of any appeals.

Did HFCU admit wrongdoing?

No. HFCU denies the claims, and the settlement is not an admission of liability.

Who do I contact with questions?

The settlement administrator at 1-866-473-1092 or [email protected], or class counsel at 1-888-668-1225. The notice asks that you not contact the court, HFCU or HFCU’s lawyers.

Is this settlement real?

Yes. It has an official court-approved notice and settlement website, and it was preliminarily approved. Final approval is pending as of October 14, 2026. Be wary of anyone asking for a fee or sensitive financial details to “claim” it.

Related Coverage

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Sources and Official Documents

1. Official settlement website, Harrison v. Hughes Federal Credit Union: https://www.harrisonreposettlement.com/
2. Settlement FAQ: https://www.harrisonreposettlement.com/page/faq
3. Key dates: https://www.harrisonreposettlement.com/page/dates
4. Important court documents, including the settlement agreement: https://www.harrisonreposettlement.com/page/docs
5. Estimated award eligibility: https://www.harrisonreposettlement.com/page/award
6. Order Certifying Settlement Class, Preliminarily Approving Class Settlement, and Directing the Issuance of Notice, Harrison v. Hughes Federal Credit Union, No. C20232230 (Ariz. Super. Ct., Pima Cnty.), as attached to the Class Action Settlement Agreement and Release: https://www.harrisonreposettlement.com/request-document/d9133565b2de17c4dfe73c5f5b376aad
7. Notice of Proposed Class Action Settlement (court-authorized notice): https://www.americanlegal.com/request-document/70647a0de64760e3ad2e93f2e992f329
8. Arizona Uniform Commercial Code, Article 9, A.R.S. §§ 47-9601 et seq., including §§ 47-9611, 47-9614, 47-9616, 47-9623 and 47-9625; Ariz. R. Civ. P. 23; 15 U.S.C. § 1681i; 26 U.S.C. § 61(a)(11)

Information is based on the court-authorized notice, settlement agreement and official settlement website as of October 14, 2026. Final approval has not been granted, and the court has not found that Hughes Federal Credit Union violated the law. This article is general information, not legal advice. AllAboutLawyer.com is not a law firm. Review the official notice and settlement agreement for the terms that apply to you. If you spot an error, tell us and we will correct it.