Deficiency Waiver. 4.2.1 Within forty-five (45) days after the Effective Date, Ally will waive and forgive all alleged deficiency balances that Xxxx’s records reflect as outstanding as of the Effective Date (the “Gross Deficiency Waiver Amount”) on the accounts of all Class Members whose vehicles were voluntarily or involuntarily repossessed and disposed of on or before the date of the Preliminary Approval Order (collectively, the “Covered Accounts”). If determined as of June 18, 2021, that amount would be estimated to be approximately eleven million, one hundred thousand U.S. dollars ($11,100,000), but as contemplated by the first sentence of this Paragraph 4.2.1, the Gross Deficiency Waiver Amount will not be finally determined until after the Effective Date. Ally will not seek to collect from Class Members any of the deficiency balances in Covered Accounts described in the first sentence of this Paragraph 4.2.1 during the 45-day period after the Effective Date. This Paragraph 4.2.1 will not apply to Class Members described in Paragraph 16.18.
Deficiency Waiver. Ally will waive (reduce to zero) any deficiency balance Ally’s records reflect as outstanding as of the Effective Date of the settlement on the accounts of all Class Members whose vehicles were voluntarily or involuntarily repossessed and disposed of on or before [insert the date of the Preliminary Approval Order]. As of [date of Preliminary Approval Order], the amount of deficiency balances to be waived total approximately $[ ] million. The agreement that these deficiency balances will be waived and forgiven is a settlement of a contested liability. The Class Representative contends that any alleged deficiency balances of Class Members whose vehicles were voluntarily or involuntarily repossessed and disposed of never arose due to the alleged failure of Ally to comply with applicable Massachusetts law. Ally disagrees with the Class Representative’s contention. You should consult your tax adviser about the tax issues associated with this settlement. Certain relief provided under this settlement may be subject to the payment of taxes. Credit Bureau Reporting Ally will request that the three nationwide consumer reporting companies—Equifax, Experian, and TransUnion—delete tradeline information related to the Ally accounts on the credit reports of Class Members whose deficiency balances are waived, as described above. NON-ENFORCEMENT OF XXXXXXX SETTLEMENT RELEASE A different class settlement is currently pending in Ally Financial Inc. x. Xxxxxxx, Case No. 16JE- AC01713-01, Jefferson County Circuit Court (the “Xxxxxxx Settlement”). You may also have received a notice about the Xxxxxxx Settlement. As part of the settlement relief in this lawsuit, Xxxx will not enforce the release in the Xxxxxxx Settlement against Class Members. As a result, any Class Member who participates in the Xxxxxxx Settlement may still participate fully in, and receive the benefits and obligations of, the settlement in this lawsuit (including the releases), but will not be subject to the Xxxxxxx Settlement release.
