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United States District Court for Eastern District of Virginia Begum v. Fair Collections & Outsourcing, Inc. Case No. 1:24-cv-893 |
You Could Be Affected by a Class Action Settlement involving Consumer Reporting
A federal court authorized this notice. This is not a solicitation from a lawyer. You are not being sued.
Important things to know:
- This notice explains the Settlement, the Settlement Class, and your legal rights and options.
- If you take no action, you will still be bound by the Settlement and its releases.
- You can learn more on this website
Information About the Lawsuit and the Settlement
What is this Lawsuit About?
Class Representative Nasreen Begum (“Class Representative” or “Plaintiff”) filed a class action lawsuit in federal court against Fair Collections & Outsourcing, Inc. (“Defendant” or “FCOI”), alleging that Defendant violated the Fair Debt Collection Practices Act (FDCPA) because it attempted to collect early termination fees not permitted by the underlying leases.
Defendant denies that it did anything wrong or that it violated any laws. The Court has not decided that Defendant violated the FDCPA. The Court has not made any determination that the early termination fees are permitted or not permitted by the underlying leases. In other words, the Court has not decided that any fees are owed or not owed. The Court has not made any determination that this lawsuit should proceed as a class action, as opposed to individual claims brought by plaintiff. This Notice should not be interpreted as an expression of the Court’s opinion about which side is right or wrong. If the parties had not reached a settlement, Defendant would have vigorously defended the lawsuit and asked for a ruling in its favor.
Within the Settlement, you are a potential member of the “Settlement Class” or “Class Members”. The Settlement Class is all natural persons who: (1) signed or cosigned rental leases associated with 1,344 FCOI accounts where the underlying lease was prepared using the National Apartment Association lease form, (2) where the lease property was either located in Virginia or managed by the same property management group as Plaintiff, (3) which accounts were placed with FCOI within one year prior to May 28, 2024 and (4) the balance at the time of placement exceeded the amount of two months’ rents on the underlying lease.
Proposed Settlement Benefits
The benefits for Class Members fall under the category of injunctive relief. An injunction occurs when a court orders a person to do or not to do something, in this case, making changes to FCOI’s business practices. The Settlement requires the Defendant, at its expense, delete all credit reporting related to the Class Members’ accounts. Defendant will also cease all collection on these accounts and return the accounts back to the respective property manager, and Defendant will not seek to collect these debts from Class Members in the future. All Class Members will receive the benefit from these changes in business practices. More detailed information about the injunctive relief is available on this website.
Because these procedures are being accomplished through a Court injunction, the federal district court for the Eastern District of Virginia will retain ongoing supervision and enforcement of these changes. The specific terms of these changes are included in the Settlement Agreement, a copy of which is available on this website.
There will be no payments to Class Members, and Class Members will still have the right to bring any claims for damages against the Defendant on an individual basis. A Class Member would not be able to bring a class action for claims regarding the allegations in the Lawsuit.
Defendant has agreed to pay all costs associated with sending this notice, implementing the procedures described above, and administering the Settlement. Defendant has agreed to pay the Plaintiff a $5,000 service award and Class Counsel’s attorneys’ fees and costs in an amount not to exceed $100,000, which is subject to Court approval.
Class Members do not have to pay or buy anything to benefit from the Settlement, and they will retain any individual claims for monetary damages they may have against the Defendant.
What do I do next?
Your Legal Rights and Options in this Proposed Settlement
Do Nothing
If you do nothing, you will be bound by the Court’s decision regarding the Settlement. You will not be able to pursue any class action claims against the Defendant that have been released as part of the Settlement. Review the full release on this website.
Object to the Settlement
You have the right to write to the Court to object to the Settlement.
You may object to all or part of the Settlement if you think it is not fair, reasonable, and/or adequate. To object, you must file with the Court and send copies to the parties’ counsel, a written explanation of the reasons you think that the Court should not approve the Settlement. The objection must include the following: (1) your full name, address, and current telephone number; (2) if you are represented by counsel, the name and telephone number of counsel; (3) all objections and the basis for any such objections stated with specificity, including a statement as to whether the objection applies only to you, to a specific subset of the class, or to the entire class; (4) the identity of any witnesses you may call to testify; (5) a listing of all exhibits you intend to introduce into evidence at the Final Approval Hearing, including a copy of such exhibits; (6) a statement regarding whether you intend to appear at the Final Approval Hearing; and (7) your signature and a notation that the objection is for “Begum v. Fair Collections & Outsourcing, Inc., Civil Action No. 1:24-cv-893 (E.D. Va.).”
If you object according to the steps above, the Court will consider your objection. If it overrules your objection, you will be bound by the Court’s decision and will remain part of the Class.
Your deadline to object to the Settlement is June 16, 2025.
Read on to understand the specifics of the Settlement. The Court still has to decide whether to grant final approval of the Settlement.
When and Where Will the Court Decide Whether to Approve the Settlement?
The Court will hold a final approval hearing on August 15, 2025, before the Honorable William E. Fitzpatrcik, in the United States District Court for the Eastern District of Virginia, Albert V. Bryan U.S. Courthouse, 401 Courthouse Square, Alexandria, VA 22314. At the final approval hearing, the Court will consider whether the proposed Settlement is fair, reasonable, and adequate. The Court will also hear objections to the Settlement, if any. We do not know how long the Court will take to make its decision after the hearing. In addition, the hearing may be re-scheduled at any time by the Court without further notice to you. You should check this website to confirm the hearing date, the court approval process, and the Effective Date of the Settlement.
If the Court approves the Settlement, the Court’s judgment as to the Settlement Class will be binding on all Settlement Class Members.
Who are the Attorneys Representing the Class and How Will They be Paid?
The Court has approved lawyers to represent the Settlement Class (“Class Counsel”). If you prefer to hire your own attorney to represent you in this case, you may do so at your own expense. The attorneys who have been appointed by the Court to represent the Settlement Class are:
Kristi C. Kelly
Andrew Guzzo
Casey Nash
Pat McNichol
Matthew Rosendahl
Kelly Guzzo PLC
3925 Chain Bridge, Suite 202
Fairfax, VA 22030
You will not be charged for these lawyers. Subject to Court approval, Class Counsel will seek attorneys’ fees and costs not to exceed $100,000, as provided in the Settlement Agreement. Class Counsel may also seek a service award in the amount of $5,000 to be paid to each Class Representative for their services in representing the Settlement Class.
Additional Information
This notice is only a summary of the proposed Settlement. You can review more details about the proposed settlement and access additional documents, including the full Settlement Agreement, on this website.
Questions? More information can be found on this website.
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Settlement Administrator
PO Box 23650
Jacksonville, FL 3224