Hughes Federal Credit Union

Allegations that Hughes Federal Credit Union sent improper notices to borrowers after repossessing vehicles in violation of Arizona law.

Hughes Federal Credit Union agreed to a $7 million class action settlement to resolve claims that it sent improper notices to borrowers after repossessing vehicles in violation of Arizona law. Consumers who financed a motor vehicle for personal use through Hughes Federal Credit Union, or had their vehicle loan assigned to Hughes, and whose vehicle Hughes repossessed in Arizona between May 18, 2019, and Aug. 4, 2023, may be eligible to receive an estimated cash payment of $1,067. The settlement also addresses approximately $25.6 million in claimed deficiency balances and requires Hughes to request that credit reporting agencies delete certain negative trade lines from affected borrowers’ credit files. No claim form is required for cash payments, but class members can opt out of the deficiency compromise by Nov. 20, 2026.

• Financed the purchase of a motor vehicle for consumer use through Hughes Federal Credit Union or had their vehicle loan assigned to Hughes.
• Pledged their vehicle as collateral under the finance agreement.
• Hughes Federal Credit Union repossessed their vehicle or ordered it repossessed.
• Had an Arizona address as of the date of repossession.
• The repossession occurred between May 18, 2019, and Aug. 4, 2023.