Langston v Gateway First Bank

The Class Action alleges that Gateway charged borrowers fees to make residential loan payments online or over the phone, including through the telephonic automated “IVR” (interactive voice response) system, and that these fees (referred to as “Convenience Fees”) violated the Rosenthal Fair Debt Collection Practices Act (“Rosenthal Act”), Cal. Civ. Code § 1788, et seq., the California Unfair Competition Law (“UCL”), Cal. Bus. & Prof. Code § 17200, and breached the borrowers’ Deed of Trust. Gateway denies the claims and further denies that it did anything wrong.

No trial has been held on the merits of any allegations against Gateway or as to Gateway’s defenses. Rather, Gateway has agreed to the Settlement without admitting liability. By agreeing to the Settlement, the Parties avoid the costs and uncertainty of a trial, and Settlement Class Members receive the benefits described in the Notice. The Settlement Class Representative and her attorneys believe the Settlement is best for everyone who is affected.

The Settlement provides that, in exchange for a dismissal of the Class Action and release of claims against Defendant and other released parties, as explained in the Settlement Agreement, Defendant will create a fund of $1,175,000.00 (the “Settlement Fund”). Each Settlement Class Member who does not opt out will receive a pro rata distribution under the Settlement, after the payment of certain expenses, including attorney’s fees, costs, settlement administration expenses, and any service award. If the Court awards all expenses requested by the Parties, the Net Settlement Fund will be approximately $830,000.00. Settlement Class Members who receive a Settlement Payment are solely responsible for distributing or allocating their payment between or among all co-account holders.

Also, as part of the Settlement, Gateway agreed that by January 1, 2022, Gateway would stop charging or collecting Convenience Fees to any Settlement Class Member and to any borrower and would refrain from the charging or collection of Convenience Fees from borrowers for a period of at least one year after entry of the Final Approval Order.

To receive a payment, you do not have to do anything. However, if you have recently moved or you believe that the mailing address on file at Gateway is not current, contact the Settlement Administrator at 1-855-604-1714 to ensure the check is mailed to your current address. Settlement Class Members who do not opt out of the Settlement Class will receive a check by mail in an amount equal to their pro rata distribution. Distribution will be made after the Settlement is approved, the settlement administration is complete, and any appeal is addressed. Payment can take time. Please be patient.

Unless you opt out of the Settlement, you are in the Settlement Class, which means that upon final approval of the Settlement, you will be deemed to have fully released, forever discharged, and are permanently barred and enjoined from instituting, commencing, or prosecuting any claims, counterclaims, actions, causes of action, suits, setoffs, costs, losses, expenses, sums of money, accounts, reckonings, debts, charges, complaints, controversies, disputes, damages, judgments, executions, promises, omissions, duties, agreements, rights, and any and all demands, obligations and liabilities, of whatever kind or character, direct or indirect, whether known or unknown, at law or in equity, by right of action or otherwise, arising out of, based upon, or related in any way to the charging, collection, or attempted collection of Convenience Fees accruing from June 8, 2016, through April 25, 2022.

If you do not like the Settlement and you believe that you could receive more money by pursuing your claims on your own (with or without an attorney that you could hire) and you are comfortable with the risk that you might lose your case or get less than you would in this Settlement, then you may want to consider opting out.

If you believe the Settlement is unreasonable, unfair, or inadequate and the Court should reject the Settlement, you can object to the Settlement terms. The Court will decide if your objection is valid. If the Court agrees, then the Settlement may not be approved and no payments will be made to you or any other member of the Classes. If your objection (and any other objection) is overruled, and the Settlement is approved, then you may still get a payment and/or forgiveness of Uncollected Fees, and will be bound by the Settlement.

If you want to participate in the Settlement, then you don’t have to do anything; you will receive a payment if the Settlement is approved by the Court.

If you do not exclude yourself, you can object to the Settlement if you don’t like any part of it. You can give reasons why you think the Court should not approve the Settlement, the request for attorney’s fees and expenses, or the request for a Settlement Class Representative service award. Objections must be submitted in writing to the Settlement Administrator at Langston v Gateway First Bank Settlement Administrator, P.O. Box 6606, Portland, OR 97228-6606, and must be postmarked no later than August 8, 2022.

Any objection should contain all of the following information:

1. the caption of the Class Action: “Langston v. Gateway First Bank, Case No. 5:20-cv-01902-VAP-(KK)”;
2. the objector’s full name, address, and telephone number;
3. if applicable, the name and address of any person claiming to be legally entitled to object on behalf of a Settlement Class Member and the basis of such legal entitlement;
4. all specific legal and factual bases for the objection, including all evidence and legal argument;
5. whether the objector is represented by counsel and, if so, the identity of such counsel and a list of all cases in which such counsel has represented an objector in objecting to a class action settlement;
6. a statement indicating whether the objector and/or objector’s counsel’s intend to appear at the Final Approval Hearing, and if so, a list of witnesses, if any, that the objector intends to call; and
7. the objector’s signature.

If your objection does not contain all of this information, is mailed to the incorrect address, or is postmarked after the deadline specified above, your objection will be considered invalid and you will be deemed to have waived your objections.

The Court appointed the law firms of Carney Bates & Pulliam PLLC and Bailey & Glasser LLP to represent you and other Settlement Class Members (referred to together as “Class Counsel”). Class Counsel will ask the Court for attorneys’ fees of up to 25% of the Settlement Fund, plus reimbursement of reasonable litigation expenses. Class Counsel will also request approval of a service award to the Settlement Class Representative in the amount of $5,000. Class Counsel’s motion for attorneys’ fees, expenses and a service award will be filed at least 21 days prior to the deadline to exclude from or object to the Settlement, and subsequently made available on this Settlement Website. If you have any questions for Class Counsel, you may direct those to Randy Pulliam, Carney Bates & Pulliam PLLC at 519 W. 7th St., Little Rock, AR, 72201.

The Court will hold a Final Approval Hearing at 11:00am on August 29, 2022 at the United States District Court for the Central District of California, First Street Courthouse, 6th Floor, 350 W. 1st Street, Los Angeles, CA 90012. At this hearing, the Court will consider whether the Settlement is fair, reasonable, and adequate. If there are objections, the Court will consider them. The Court will also decide Class Counsel’s application for attorneys’ fees, expenses, and a service award. Further information about how to attend the hearing, including whether the hearing will be held in person at the courthouse or online via Zoom videoconferencing, will be available on this Settlement Website. The Court may change the date or time of the Final Approval Hearing without further notice, so please check this Settlement Website for any changes.

You do not have to appear at the Final Approval Hearing to receive the benefits of the Settlement.

The deadline for requesting award check reissue has passed.