So the next time you get one of these email about the class action settlement, do not delete it, take a minute to read it, think about your options, and decide what is better for you.
Have you ever received a random email or letter stating that you can get money from a legal proceedings? It may be about a company that has more charge for something, sell a product that didn’t work, or even a major data violation where your personal information is leaked. They are called a class action town, and they are primarily a way to pay for regular people (such as you and me) when a company does something wrong.
But the point here is: These settlements can be confused. Should you sign up for one? Will you really get any money? Is it even worth your time?
If you’ve ever thought about it, don’t worry. I have covered you! There are six easy things to keep in mind while dealing with the class action settlement.
1. Read fine print (or at least try to understand it!)
I know, I know – no one likes to read legal things. But before you do anything, make sure you understand what the settlement is. The notice you get will usually explain:
What is about legalization (did the company sell any bad product? More charge you? Leak your private information?)
Who is eligible to earn money
How much money (or other compensation) is being offered
What do you have to do to claim your part
What rights are you giving by accepting a settlement
Some settlements get cash, while other discounts offer free repairs or credit (which may be useful to you or not). For example, if a cellphone company charged its customers more, they can offer you $ 5 return or $ 10 coupon for their services – which forcing you to spend more money with them! Timid, okay?
So ask yourself before signing up: “Is it worth it?” If it seems unfair or confused, you want to dig a little deep before deciding.
2. Is the settlement actually fair?
Not all class action settlements are made equal. Some give a lot of money to people, while the other looks like a joke. Imagine that a company earned millions by charging consumers, and then as a result of this litigation, people get only $ 2, while lawyers get millions of people. It doesn’t seem fair, is it so?
A good way to judge a settlement is to ask yourself:
Does it feel like a reasonable amount of compensation?
Are the lawyers taking a lot of money?
Have people objected to this settlement before?
A good example is a violation of the Equifx data. When Equifx leaked the personal information of millions of people, they offered “free credit monitoring” as part of the settlement. But people felt that this was not enough, so some fought back and instead proceeded for the cash payment option.
If nothing seems right, you just don’t need to accept it. Which brings us to the next point.
3. You can’t say (or even fight!)
Many people do not realize it, but when you are part of the class action legislature, you do not need to accept the settlement. Originally you have some choices:
Opt -out – This means you say, “No, I don’t want to be a part of it.” Why would you do that? You may think you can sue the company yourself and get more money than a class action offer.
Object – If you think the settlement is not fair, you can file an objection and explain it. Courts actually listen to them, and in some cases, objections have led to better deals for consumers.
For example, in the settlement against Facebook for privacy violations, many people objected because the payment was less than how much Facebook benefited from their data. In some cases, such objections can lead to better compensation.
So if you feel that a settlement is unfair, you just don’t need to accept it!
4. Deadline matter! Don’t miss them!
This is the part where many people mess up: they forget to file their claims on time.
Most class action settlements have a hard deadline, and if you miss it, you are out of your fate. You will not get any money, and you will not be able to complain later.
Here’s how to stay on top of it:
Check the Deadline as you get the notice
Set a reminder on your phone so you don’t forget
Make sure you have any desired documents (such as receipts, account numbers, or proof of purchase)
Some settlements also do not need evidence. You just fill a form and wait for your check! But others may need things like old emails, bank statements, or repair receipts.
So don’t wait until the last minute, get your claim before the deadline!
5. Be patient… Payments take time
If you are expecting your claim today and getting a check next week, think again. Classes can take months, or even years before the money is distributed. Why here:
The court will have to approve everything before the payment is over.
The settlement administrator has to review all claims to ensure that they are legal.
If a lot of people file claims, your payment may be less than expected.
For example, when Techtok settles a privacy case, according to preliminary estimates, consumers can get $ 100 each. But since millions of people filed claims, the final payment was close to $ 27.
So if you join a settlement, just know that you may wait a long time before seeing any money, and that will not be as much as you expected.
6. If you don’t believe, ask a lawyer
Most of the time, class action is straightforward, you either file a claim or you do not. But if you have been severely damaged or a lot of money has been wasted, you would like to talk to a lawyer.
For example, we say that a class action is paying $ 500 per person, but due to the company’s error you lost 000 50,000. A lawyer can tell you not to accept the class action settlement and instead file a case for the company for a bigger payment.
Many lawyers offer free consultation, so if you are confused or think that you are more deserving, it’s worth asking.
Final views: Should you be distracted by class action settlements?
So, is it worth your time to join the class action? It depends.
If this is a simple claim and you can get some free money, why not?
If you have lost a lot of money and think that the settlement is unfair, maybe the opt out and file a separate case.
If the settlement is just offering coupons or store credit for a company that you do not use, it will not be worth it.
At the end of the day, class operations are responsible for bad behavior to companies, and when something happens unfairly, they can be a good way to pay regular people.
So the next time you get one of these email about the class action settlement, do not delete it, take a minute to read it, think about your options, and decide what is better for you. You never know, more than you think you may be obliged!
