American Fair Credit Association

The lawsuit contended that AFCA’s membership program, which was marketed primarily to low-income consumers as a means of repairing damaged credit, misrepresented its ability to improve credit and denied customers many of the advertised benefits of the contract.

Members were required to pay more than $500 in fees for the first year of membership in exchange for educational materials and a members-only credit card with an initial credit limit of only $300. If members wished to terminate membership, they were required to give notice with hand delivery or certified mail and continue to pay membership dues for 90 days.

Girard Sharp achieves $40 million settlement on behalf of California customers

In February 2003, Judge Ronald Sabraw of the Alameda County Superior Court and Judge Maxine Chesney of the U.S. District Court for the Northern District of California granted final approval to the settlements, valued at over $40 million.

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