AFNI, INC. v. THUY MARTINEZ, et al.

You or someone in your family may have had a consumer loan agreement directly with or that was assigned to Counterclaim Defendants for a loan used to purchase property repossessed by Counterclaim Defendants.

You were sent a short form notice by mail because you should know about a proposed settlement of a class action lawsuit in which you may be a class member, and about all your options, before the Court decides whether to approve the settlement. If the Court approves it, and after objections and appeals are resolved, Counterclaim Defendants will cancel debts and try to delete deficiency balance information from credit reports related to the repossessed property. Class members will also receive payments, as described more fully in this package.

The notice explains in greater detail about the lawsuit, the settlement, your legal rights, what benefits are available, who is eligible for them, and how to get them.

The Court in charge is the Twenty-First Judicial Circuit Court for St. Louis County, Missouri, and the case is AFNI Inc v. Miguel Martinez et. al., Case No. 23SL-AC00070-01.

The lawsuit claimed Counterclaim Defendants violated statutory requirements for certain repossession notices sent by Counterclaim Defendants when attempting to collect on Class Members’ loans and repossessing and selling their property. You can read the claims in more detail in the Counterclaim of Thuy Martinez (“Class Representative”) on the "Important Court Documents" page here.

In a class action, one or more people called class representatives sue for other people with similar claims. The class representative in this case is Thuy Martinez. All individuals with similar claims to the Class Representative are “Class Members.” In class actions, one court and one lawsuit resolve the issues for all Class Members, except for those who exclude themselves from the Class. The Honorable Richard Stewart oversees this class action.

The parties disagree over who would have won and what the Class would’ve recovered if they had won. Class Representative believed she could recover 10% of the principal amount of their loan plus the interest charge and other relief. Counterclaim Defendants believed Class Representative and the Class were entitled to nothing (or may even owe Counterclaim Defendants money). To resolve the dispute, and because both parties are unsure of what would’ve happened in a trial, they agreed to a settlement. That way, they avoid the cost of a trial, and the people affected will get money and other benefits sooner. The Class Representative and Class Counsel believe the settlement is fair and equitable for all Class Members.

Everyone who fits the following description and who is not otherwise excluded is a Class Member:

“All persons to whom Counterclaim Defendants mailed a presale notice and a post-sale explanation.”

Excluded from the Class are “all persons: (1) mailed a presale notice and post-sale explanation before July 25, 2017; (2) against whom State Farm has obtained a final deficiency judgment; and (3) who filed for bankruptcy after the date on their presale notice and whose bankruptcy ended in discharge rather than dismissal.”

You’re not a Class Member if (1) State Farm has obtained a deficiency judgment against you; (2) you filed for bankruptcy after the date on your presale notice and your bankruptcy ended in discharge rather than dismissal; and/or (3) the presale and post-sale notices mailed to you were mailed before July 25, 2017.

If you are still not sure whether you are included, you can ask for free help. You can call 1-800-351-1696 or visit the "Important Court Documents" page here for more information.

Counterclaim Defendants have agreed to provide the Class with settlement benefits with an estimated value exceeding $110,000,000, which includes:

Money
Counterclaim Defendants have agreed to create a $35,000,000 fund to pay: (a) Class Members; (b) the attorneys’ fees and expenses for representing the Class; and (c) Thuy Martinez, for her services as Class Representative. This amount is called the “Cash Fund.”

Deficiency Write-Off
Outstanding amounts Counterclaim Defendants claimed you owed after they repossessed and sold your property are called “Deficiency Balances.” After the Effective Date, these Deficiency Balances will be written down to $0 and collection efforts on the Deficiency Balances will cease. The value of this benefit to the Class and the Deficiency Balances being eliminated is estimated to be at least $75,000,000. This amount is called the “Deficiency Write-Off.”

Credit Bureau Reporting
After the Effective Date, Nationwide consumer reporting companies—Equifax, Experian, TransUnion, and Innovis—will be requested to delete credit reporting information related to your agreement with Counterclaim Defendants. Counterclaim Defendants do not ultimately control whether each credit reporting company will comply with the request.

Class Members are strongly encouraged to consult with a tax professional about the tax effects of any money and other benefits (including the Deficiency Write-Off) received from this settlement. The attorneys in this case cannot provide you with any tax advice, and your receipt of benefits under this settlement might have tax consequences. However, Counterclaim Defendants have agreed not to issue an IRS Form 1099-C to Class Members because the Parties believe this Settlement involves the discharge of a “contested liability” or “disputed debt.”

Every Class Member will receive the benefits of the Deficiency Write-Off. Class Members will also receive a check payment from the Cash Fund.

The payment you receive depends on the money you borrowed and the interest rate on your loan.

By doing nothing, you will receive the benefits that come from the settlement, including money.

The Court will hold a hearing on May 6, 2026 at 8:45am to decide whether to approve the settlement. Even if Judge Richard Stewart approves the settlement, there may be appeals. It’s always uncertain how an appeal will be resolved and how long it will take. Some appeals take more than a year. Please be patient. You’ll receive your payment if the settlement is approved and after that approval becomes a “final judgment” (i.e. after any appeals are resolved or the time for appealing has passed).

Unless you exclude yourself by following the procedure below, you are a part of the Class, and that means you can’t sue, continue to sue, or be part of any other lawsuit against Counterclaim Defendants about the legal issues in this case. For example, you won’t be able to make any independent claim against Counterclaim Defendants arising from the written notices (presale and post-sale repossession notices) this lawsuit is about. Staying in the Class also means all the Court’s orders in this lawsuit will apply to you and legally bind you. To see exactly the legal claims and defenses you give up if you get settlement benefits, please view the Settlement Agreement on the "Important Court Documents" page here.

If you don’t want benefits from this settlement, but you want to keep the right to sue or continue to sue Counterclaim Defendants on your own about the legal issues in this case, then you must take steps to get out of the settlement. This is called “excluding” yourself—or is sometimes called “opting out” of the Class.

To exclude yourself from the settlement, you must send a letter by mail saying you want to be excluded from AFNI Inc v. Miguel Martinez et. al., Case No. 23SL-AC00070-01. Include your name, address, telephone number, last four digits of your Social Security Number, and the name of any other person on your agreement with Counterclaim Defendants, along with your signature. The exclusion request must be signed by you and by any co-borrower on your agreement, unless the co-borrower is deceased, in which case you must include a death certificate with your request. You cannot exclude yourself by having an actual or purported agent or attorney acting for you or a group of Class Members sign the letter. You must mail your exclusion request postmarked no later than April 23, 2026, to:

AFNI v Martinez c/o Class Administrator
P.O. Box 23309
Jacksonville, FL 32241

If you ask to be excluded, you’ll get no settlement benefits, and you cannot object to the settlement. You won’t be legally bound by anything that happens. You may sue (or continue to sue) Counterclaim Defendants about the claims asserted.

No. Unless you exclude yourself, you give up any right to sue Counterclaim Defendants for the claims this settlement resolves. If you have a pending lawsuit, speak to your lawyer in that case immediately. You must exclude yourself from this Class to continue your own lawsuit. Remember, the exclusion deadline is April 23, 2026. Exclusion requests postmarked later than this date will not be honored.

No. But you may sue, continue to sue, or be part of a different lawsuit against Counterclaim Defendants about the same type of claims that were made in this case.

The Court appointed Martin L. Daesch, sole member of MLD Law Firm, LLC; Jesse B. Rochman, sole member of JBR Law Firm; Craig W. Richards of OnderLaw LLC; and OnderLaw, LLC to represent you and other Class Members. These lawyers are called Class Counsel. You will not be charged for these lawyers. They are experienced in handling similar cases against consumer lenders. More information about these lawyers and their firm is available at www.onderlaw.com. You needn’t hire your own lawyer because Class Counsel is working for you. If you want to be represented by your own lawyer, you may hire one at your own expense.

Class Counsel has prosecuted this litigation on a contingent basis and has incurred or advanced all costs, expenses, and attorneys’ fees associated with the lawsuit since their investigation of claims against Counterclaim Defendants began in 2023. Class Counsel has not been paid for their work or received reimbursement for the expenses they have incurred or advanced for the Class Representative and Class Members. Class Counsel will ask the Court to approve payment of attorney’s fees that do not exceed 35% of the value of the settlement benefits, reimbursement for costs and expenses. Class Counsel will also request that the Court approve payment of $25,000 to Thuy Martinez for her services as Class Representative. The fees and expenses would pay Class Counsel for investigating the facts, litigating the case, negotiating the settlement, and paying the costs to administer the settlement.

If you’re a Class Member, you can object to the settlement if you don’t like any part of it. You can explain why you think the Court shouldn’t approve it. The Court will consider your views. To object, you must appear in court at the Fairness Hearing on May 6, 2026, at 8:45am or send a letter saying you object to AFNI Inc. v. Miguel Martinez et. al., Case No. 23SL-AC00070-01. Your letter must include your name, address, telephone number, facsimile number (if available), email address (if available), last four digits of your Social Security Number, a statement of your objections, and the reasons and facts you contend support your objections. Your objection must include any documents (including loan documents) you rely upon to support your objection and identify any witnesses you plan to call at the Fairness Hearing (described below). If there is other evidence (e.g., documents) that you rely upon for your objection, you must attach copies to your objection. If you plan to use expert witnesses about your objection, you must provide—with your objection—an expert report for each expert outlining the expert’s opinions and the facts and reasons for the expert’s opinions. You must also state whether you intend to appear at the Fairness Hearing and provide copies of any evidence you intend to use at the hearing. Finally, you must sign and date the objection and include a statement substantially in this form: “I declare (or certify, verify, or state) under penalty of perjury that all of the information in the objection is true and correct. Executed on (date). (Signature).”

Mail the objection to the Court, to Class Counsel, and to Counterclaim Defendants’ Counsel at the separate addresses below. Your objection must be received prior to the Fairness Hearing, or you must appear in court at the Fairness Hearing.

If an attorney is submitting the objection for you, besides information and materials discussed above, the objection must include the name, address, telephone number, facsimile number (if available), and email address (if available) of your attorney and a detailed description of the legal authorities supporting each objection.

If you file an objection, Class Counsel or Counterclaim Defendants’ Counsel may notice and take your deposition, consistent with the Missouri Supreme Court Rules, at an agreed-upon location before the Fairness Hearing and seek any documentary evidence or other tangible things relevant to the objection. Failure by an objector to comply with discovery requests may cause the Court to strike the objection and otherwise deny that person the opportunity to be heard further. The Court reserves the right to tax the costs of any such discovery to the objector or objector’s counsel should the Court determine the objection is frivolous or is made for an improper purpose.

Objecting is telling the Court you don’t like something about the settlement. You can object only if you stay in the Class. Excluding yourself is telling the Court you don’t want to be part of the Class. If you exclude yourself, you have no basis to object because the case no longer affects you.

The Court will hold a Fairness Hearing at 8:45am on May 6, 2026, at the Twenty-First Judicial Circuit of St. Louis County, Missouri, 105 South Central Avenue, Clayton, MO 63105. At this hearing, the Court will consider whether the settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them. Judge Richard Stewart will listen to people who have asked to speak at the hearing. The Court may also decide how much to pay to Class Counsel and the Class Representative. After the hearing, the Court will decide whether to approve the settlement. We don’t know how long these decisions will take.

No. Class Counsel will answer any questions Judge Richard Stewart may have. But you are welcome to come at your own expense. If you send an objection, you don’t have to come to Court to talk about it. If you mailed your written objection on time with all the required information, the Court will consider it. You may also pay your own lawyer to attend, but that is unnecessary.

You may ask the Court for permission to speak at the Fairness Hearing. You may speak either for or against the settlement. To speak for the settlement, you must send a letter saying it is your “Notice of Intention to Appear" in “Afni v. Martinez et. al, Case No. 23SL-AC00070-01.” Include your name, address, telephone number, last four digits of your Social Security Number, and your signature. Your “Notice of Intention to Appear” must be postmarked no later than April 23, 2026, and be sent to the Circuit Clerk’s Office, Class Counsel, and Counterclaim Defendants’ Counsel, at the addresses provided in question 18.

If you plan to speak at the Fairness Hearing to tell the Court you don’t like something about the settlement, you must submit an objection as detailed in question 18 and include with that objection a statement you intend to appear at the Fairness Hearing. The identity of any witnesses or experts you plan to present at the Fairness Hearing, with evidence you intend to present at the Fairness Hearing, must also be included with your objection.

You cannot speak at the hearing if you excluded yourself or if you don’t send in a request with the required information and documents.

This notice summarizes the proposed settlement. More details are in the Settlement Agreement. You can get a copy of the Settlement Agreement by writing to AFNI v Martinez c/o Class Administrator, P.O. Box 23309, Jacksonville, FL, 32241, or by visiting the "Important Court Documents Page" here.

You can call 1-800-351-1696; write to AFNI v Martinez c/o Class Administrator, P.O. Box 23309, Jacksonville, FL, 32241, or visit the "Important Court Documents" page of the website here where you will find information to help you determine whether you are a Class Member.

Please notify the Settlement Administrator of any changes in your mailing address so that future correspondence will be sent to the correct address.

To update your mailing address, you can use the Update Address button at the top of this page. You will need your Notice ID and PIN.

A different option is to contact the Settlement Administrator via email at [email protected]. Please put ‘Change of Address’ in the subject line and provide your full name, previous address, current address, and the Notice ID from your notice in the body of the email. You will need to attach documentation verifying your current address – this could be a driver’s license, utility bill, etc. Alternatively, you can mail that information to: AFNI v MARTINEZ, c/o Settlement Administrator, PO Box 23309, Jacksonville, FL 32241.

A copy of your marriage license, divorce decree or court order is required for a name change.

You can submit the documentation via email at [email protected]. In your email, put ‘Name Change’ in the subject line. In the body of the email, provide the Notice ID, original name, and address of the Class Member on the Notice you received. Also provide the new name, address and phone number that you would like on future correspondence.

Alternatively, you can submit the required documents by mail to: AFNI v MARTINEZ, c/o Settlement Administrator, PO Box 23309, Jacksonville, FL 32241.

Two documents are required for a name change for a deceased Class Member. They are: 1) A Copy of the death certificate, and 2) Documentation providing evidence to show the new payee as legal beneficiary – this could be a will, estate documentation, etc. The documentation will be reviewed when received.  We may reach out to you with additional questions, if necessary.

You can submit these documents via email at [email protected], put ‘Name Change’ in the subject line. In the body of the email, provide the Notice ID, original name and address of the Class Member on the Notice you received. Also provide the new name, address and phone number that you would like on future correspondence.

Alternatively, you can submit the required documents by mail to: AFNI v MARTINEZ, c/o Settlement Administrator, PO Box 23309, Jacksonville, FL 32241.