A friend called me this week with the following scenario.
My friend (“Bob”) received a letter in the mail from Company A informing him that a class action lawsuit had been settled, and that he qualified for part of the settlement amount. For a 40% fee, Company A offered to file the paperwork and proof of damage for him. The letter did not inform Bob of the company/person that would actually be paying the money, nor did the letter tell him the terms and conditions of accepting the settlement sums. When Bob called Company A to obtain answers to these questions, Company A was reluctant to fill any details.
Bob, rightfully, was skeptical of Company A, and this cynicism ending up being a valuable asset–Bob might now be able to obtain the entire amount of his settlement.
When class actions are settled, the court will enter an order approving the settlement. These settlements will often designate a person, sometimes called a trustee or special master or administrator, who is in charge of administering the funds set aside in trust for the benefit of the class, the persons/entities who have been harmed.
If you qualify as a member of the class of persons entitled to a settlement, then you do not likely need to pay a third party nearly half of your settlement money in order to actually receive the money. Do a little research, and find out who is actually paying the money. Then, give them a call, or do a google search to see if they have a self-help website (such as this one here), which explains how you can obtain ALL of the money you are entitled to.