Hubbard & Biederman LLP

Provident Class Action Settlement

You may be entitled to a cash payment ranging from approximately $19.00 per late charge to $35.00 per late charge assessed by or paid to Provident Funding Associates, L.P. ("Provident") in connection with the proposed settlement of a class action lawsuit.

Daniel Silva and Larry Mattison filed a Class Action Complaint against Provident in the Superior Court of the State of California, County of San Mateo. The Complaint, as amended, challenges late charges assessed by or paid to Provident in connection with certain mortgage loans. Plaintiff claims that in assessing late charges Provident violated various California statutes as well as breached the terms of the loan agreements. Defendants denied all allegations of wrongdoing .

On August 30, 2006, the Court entered an Order Granting Class Certification. The certified Class is defined as follows:

Those persons who between November 30, 2000, and July 14, 2005, sent payment by mail to the Los Angeles processing facility that Provident has used to process note payments, and were assessed or paid late charges. This Class contains the following Subclasses: (i) those persons whose promissory notes were secured by their primary residence and who between February 2001 and April 2004 sent payment to Provident by mail to the Los Angeles processing facility, using the coupon and envelope provided to them and who were assessed or paid late charges; (ii) those persons whose promissory notes were secured by property other than their primary residence and who between February 2001 and April 2004 sent payment to Provident by mail to the Los Angeles processing facility, using the coupon and envelope provided to them, and who were assessed or paid late charges, which subclass does not include claims under the CLRA [California Consumer Legal Remedies Act]; (iii) those persons whose promissory notes were secured by their primary residence and who between November 30, 2000, and July 14, 2005, sent payment by mail to the Los Angeles processing facility, and were assessed or paid late charges; and (iv) those persons whose promissory notes were secured by property other than their primary residence and who between November 30, 2000, and July 14, 2005, sent payment by mail to the Los Angeles processing facility, and were assessed or paid late charges, which subclass does not include claims under the CLRA. Excluded from the Class are all persons (i) whose monthly payments that resulted in the assessment of a late charge were not mailed before the last day of the grace period set forth in their promissory notes; (ii) whose monthly payments prior to February 2001 and after April 2004 that resulted in the assessment of a late charge were processed more than one day after the last day of the grace period set forth in their promissory notes; (iii) whose late charges were waived by Provident prior to June 5, 2006; (iv) whose monthly payments that resulted in the assessment of a late charge were in an amount less than the full amount of the monthly principal and interest set forth in their notes; (v) whose monthly payment of principal and interest, included a late charge payment for that month; (vi) who are legal representatives, officers, directors, assigns and successors of Provident or any of their affiliates, subsidiaries, or parents; and (vii) who are the presiding and any appellate judges in this case, and all relatives of these judges within the third degree of consanguinity. Notwithstanding anything to the contrary in connection with the above exclusion from the Class, any Class Member who has been assessed multiple late charges some of which are not subject to any exclusion, is a Class Member to the extent of such non-excluded late charges.

On October 19, 2007, the parties entered into a Settlement Agreement. On November 27, 2007, the Court entered its Order Granting Preliminary Approval of Class Settlement and Setting Settlement Hearing. The proposed Settlement provides for payment of a total of $1.2 million to the Class that is allocated based upon receipt by Provident of payments assessed a late charge. Specifically, the proposed allocation is as follows:

All late charges assessed for monthly loan payments received one day after the end of the Grace Period: $720,000 or approximately $35.00 per late charge;
All late charges assessed for monthly loan payments received two days after the end of the Grace Period: $360,000 or approximately $24 per late charge; and
All late charges assessed for monthly late payments received three days after the end of the Grace Period: $120,000 or approximately $19 per late charge.

To determine the amount, if any, you are entitled to receive under the proposed Settlement:

Click Here, and then on the next web page, type in your Provident loan number shown under your address on the Notice of Class Action, Proposed Settlement, and Settlement Hearing document that you received, and then click Submit.

You may view the following documents in connection with this case:

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