Levine v. Citibank N.A.

Filing 173

PRELIMINARY APPROVAL ORDER. The deadline to submit a claim, to object, and to opt out is January 31, 2013. The Final Approval Hearing shall be held on March 15, 2013. Signed by Judge Maxine M. Chesney on November 6, 2012. (Attachments: # 1 Exhibit A, # 2 Exhibit B, # 3 Exhibit C) (mmclc1, COURT STAFF) (Filed on 11/6/2012) Modified on 11/6/2012 (mmclc1, COURT STAFF).

***NOTICE OF PENDENCY OF CLASS ACTION SETTLEMENT***
UNITED STATES DISTRICT COURT FOR THE
NORTHERN DISTRICT OF CALIFORNIA
In Re Citibank HELOC Reduction Litigation
Case No. 09-cv-0350-MMC
>>Click Here to Read the Notice of Right to Request Reinstatement<<
>> Click Here For the Claim Form<<
(Former customers of Citibank must submit a Claim Form by January 31, 2013 to obtain
Settlement Benefits)
>>Click Here to Download a Copy of the Class Action Settlement Agreement<<
IF CITIBANK SUSPENDED OR REDUCED YOUR HOME EQUITY LINE OF CREDIT
(“HELOC”) YOU MAY BE ENTITLED TO BENEFITS FROM A CLASS ACTION
SETTLEMENT
The United States District Court for the Northern District of California authorized this Notice.
This is not a solicitation from a lawyer or a lawsuit against you.
You need not live in California to participate.

YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT
EXCLUDE YOURSELF

OBJECT
ATTEND A HEARING
DO NOTHING

You will receive no benefits, but you will retain any
rights you might have to file a lawsuit against Citibank
relating to its policies and/or practices of suspending or
reducing HELOCs based on a significant decline in
property value.
Write to the Court about the reasons that you are against
the Settlement.
Request that you be allowed to speak in Court about the
fairness of the Settlement.
Current Citibank HELOC customers may apply for
reinstatement or do nothing to obtain the settlement
benefits for current customers. If you elect to request
reinstatement or do nothing, you will give up certain
rights, as explained below. Former customers will
receive no benefit if they do nothing.

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IF YOU ARE A FORMER
CUSTOMER AND
QUALIFY, SUBMIT A
CLAIM FORM

This is for former customers of Citibank who incurred
an early closure release fee when they terminated their
HELOCs following a suspension or reduction of their
HELOC by Citibank. If you elect to receive a benefit or
do nothing, you will give up certain rights as explained
below.

These rights and options—and the deadlines to exercise them—are explained in this
notice.
The Court in charge of this case still has to decide whether to give final approval to
the Settlement. If it does, and after any appeals are resolved, the benefits to current
customers will go into effect, and the benefits to Former Customers discussed in this
notice will be distributed to those who qualify and have timely submitted valid
Claim Forms.
BASIC INFORMATION
1. Why was this Notice issued?
A Court authorized this Notice to inform you of the settlement of a class action lawsuit against
Citibank, N.A. (“Citibank” or “Defendant”) pending in the United States District Court for the
Northern District of California. The Court on [INSERT DATE] granted preliminary approval of
the Settlement and has certified the Class, defined more fully bellow, subject to a fairness
hearing, which will take place on March 15, 2013 at 9:00 a.m. in the United States Courthouse,
Courtroom 7 – 19th Floor, 450 Golden Gate Avenue, San Francisco, California 94102 to
determine if the Settlement is fair, reasonable and adequate. At that time, the Court will also
consider the request by Class Counsel for an award of attorneys’ fees and expenses, and
incentive payments to the Class Representatives.
This Notice explains the nature of the class action lawsuit and the terms of the Settlement and
informs you of your legal rights and obligations. By agreeing to the Settlement, Citibank is not
admitting it is liable to the Class, or anyone else, or that it violated any law or regulation.
Indeed, Citibank denies any and all claims in the lawsuit.
You have options, which are explained below.
2. Who is the Defendant?

Citibank is a national banking association.
3. What Is The Lawsuit About?

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Plaintiffs David Levin, Loren S. Siegel, Gary Cohen, Marie Cohen, Mark Winkler, and Jennie
Lapointe filed their amended consolidated class action complaint in the United States District
Court for the Northern District of California on behalf of all Citibank HELOC customers
nationwide whose HELOCs were suspended or reduced based on a claim by Citibank that the
value of the property securing the HELOC had experienced a significant decline in value, from
January 1, 2008 to January 31, 2012.
The Plaintiffs alleged in the Complaint that Citibank suspended or reduced their respective
HELOCs based on a claim that their homes had significantly declined in value when, according
to the Plaintiffs, their home values purportedly had not declined.
You do not need to live in California to receive a benefit under the proposed Settlement if you
are eligible. This class action asserts claims on behalf of the nationwide class for alleged
violations of the Truth in Lending Act (“TILA”) and its implementing regulation, Regulation Z,
breach of contract, breach of the implied covenants, and alleged violations of California’s Unfair
Competition Law (“UCL”) Cal. Bus. & Prof. Code § 17200. To resolve these matters without
the expense and burden of further litigation, the Parties have reached this Settlement, which
resolves any and all claims in conjunction with the Settlement Class Members’ claims against
Citibank and the other Released Parties relating to their HELOC suspensions or reductions. The
Settlement requires Citibank to provide settlement benefits to the Settlement Class Members,
attorneys’ fees to Class Counsel, and incentive payments to the Class Representatives, if
approved by the Court. This settlement is not an admission of wrongdoing by any Party.
4. Who Is In The Class?

You are a member of the Class if you were a Citibank customer in the United States from
January 1, 2008 to January 31, 2012, and your Citibank HELOC account was suspended or
reduced based on a claim by Citibank that the value of the property or dwelling securing the
HELOC (e.g., your home) had experienced a significant decline in value.
You cannot participate in the Settlement if you are any judge presiding over this case and the
judge’s immediate family members.
5. What Relief Is Provided To Settlement Class Members Under The Settlement?
Notice of Right to Request Reinstatement: The Settlement requires that Citibank send
A.
each Settlement Class Member who is a current Citibank HELOC customer a Notice of Right to
Request Reinstatement of the suspended or reduced HELOC under Citibank’s current HELOC
suspension policies and procedures. The Notice of Right to Request Reinstatement shall advise
the current customers that they have the right to file a request for reinstatement of their HELOCs
by initiating an appeals process.
B.
Service Assurances. For a period of 18 months following the “Effective Date” as
defined in the Settlement Agreement, Citibank agrees not to change its HELOC suspension and

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reduction policies (for suspensions and reductions based on significant declines in property
values) in any material manner that would be less beneficial to its borrowers except that Citibank
will maintain the full ability to modify its policies and practices based on amendments or
clarifications of applicable law as enacted or interpreted by the courts, Congress, or federal
regulators or as necessary for Citibank to comply with any such amendment, interpretation or
clarification.
C.
Enhanced Suspension Notices. For a period of 18 months commencing 30 days after
the Effective Date as defined in the Settlement, Citibank shall, to the extent it is feasible and/or
not cost prohibitive or unduly burdensome, include in its HELOC suspension and reduction
notices based on significant declines in property values: (1) the present value of the property as
calculated by Citibank in connection with such line action, and (2) the appraised value required
to be eligible to seek account reinstatement. In the event that Citibank determines that it is not
feasible, or that it is cost-prohibitive or unduly burdensome, to include such information in its
suspension and reduction notices, the notices shall state that the customers may request such
information by writing to Citibank at the address provided for in the suspension and/or reduction
notice. Citibank will also commit for that time period to having its suspension and reduction
notices based on Collateral Deterioration advise customers that they may seek reinstatement if
the customers believe that: (i) the value of their home has not significantly declined by seeking a
valuation from Citibank’s approved property appraisal vendor for review appraisals for
HELOCs, and/or (ii) they have significantly paid down their first mortgage by providing a copy
of their most recent first mortgage statement showing their current first mortgage balance.
D.
Appraisals. Citibank will work with its approved property appraisal vendor with
respect to the HELOC appeals process, to generally confirm that appraisal fees charged by the
vendor to Citibank customers are reasonable based on industry-standard factors. However,
Citibank does not undertake an obligation to independently monitor or negotiate the appraisal
fees charged by its property appraisal vendor or any other third-party vendors to any particular
customer, or to ensure that the amount of the appraisal fees assessed by any such vendor is the
lowest fee available by comparison to other appraisal service providers.
F.
Benefits Specific to Former Customers. Former Citibank HELOC customers who are
eligible to submit a claim and sign, under the penalty of perjury, and timely submit completed
Claim Forms verifying: (i) that the customer closed his or her HELOC account in response to
Citibank’s suspension or reduction of the account based upon a significant decline in the value of
the property securing the HELOC, and (ii) that the customer paid an early closure release fee to
Citibank after closing the account, shall be entitled to a cash award equal to $120.00 if they have
not opted out of the settlement and meet such other criteria set forth in the Settlement
Agreement. Checks must be cashed within 120 days.

6. What Are My Legal Rights?
How Do I Submit a Claim Form for Benefits?
You are a Class Member if you meet the definition in Section 4 above.

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If you a current HELOC customer of Citibank, you do not need to do anything to receive
settlement benefits.
If you are a former Citibank customer and you (1) have closed your HELOC in response to
Citibank’s suspension or reduction based upon a significant decline in the value of your home,
and (2) paid an early closure release fee to Citibank, then you may submit a Claim Form as
described below in order to receive settlement benefits.
The Claim Form must be submitted online or postmarked by January 31, 2013, midnight
Pacific Time, or your claim will be considered untimely and will be rejected.
Follow the steps below to file a claim if you meet the criteria set forth above for former Citibank
customers.
Step 1 – Access the Claim Form. You may access a Claim Form by visiting
www.inrehelocsettlement.com or by calling 1-866-487-6522
Step 2 – Complete the Claim Form. Fill out all necessary fields and information. Make sure
you sign the form.
Step 3 – Submit the Claim Form. The Claim Form can be submitted via the Settlement
Website or via U.S. Mail to:
In re Citibank HELOC Litigation
Settlement Administrator
PO Box 2838
Portland, OR 97208-2838
Claims that are not postmarked by the claims deadline set forth above will be considered
untimely and will be rejected.
What Happens After I File My Claim?
Your claim will be reviewed upon its receipt. If your claim is approved by the Claims
Administrator and the Court grants final approval to the Settlement, you will receive a check for
$120.
By submitting the Claim Form, you will be bound by all orders and judgments of the Court, and
your claims against Citibank and other Released Parties for any and all claims related to the
suspension or reduction of your HELOC will be released. A full explanation of this process, the
release language, and the definition of Released Parties are set out in the Class Action Settlement
Agreement, which can be found by clicking here [insert link].
If any co-borrower requests exclusion as set forth below, your claim will not be valid.

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How Not to Participate in the Class
Any Class member may request to be excluded from the Settlement at any time before the OptOut/Objection Deadline, by doing as follows:
To exercise your right to opt-out and be excluded from the Class, you must complete and return
by mail a Request For Exclusion by the Opt-Out/Objection Deadline to the Claims
Administrator. The Request for Exclusion must be signed, addressed to the Claims
Administrator, and must include your name, a statement that says “I wish to be excluded
from the Citibank HELOC Settlement” or words clearly to that effect, and include the
address for the property securing the HELOC.
Requests for Exclusion postmarked after the Opt-Out/Objection Deadline of January 31, 2013,
midnight, Pacific Time, will be considered invalid and of no effect, and the Person who untimely
submits a Request for Exclusion will remain a Settlement Class Member and will be bound by
any orders entered by the Court (including a Judgment approving the Agreement and
implementing the Release contemplated thereby). All Settlement Class Members (exclusive of
customers who submit a valid Request for Exclusion) will be bound by the Settlement
Agreement and the Judgment, including the Release contained therein.
Any Person who timely and properly submits a Request for Exclusion shall not: (i) be bound by
any orders or Judgment entered in this Litigation nor by the Release, (ii) be entitled to any
Settlement Benefit under this Settlement, (iii) gain any rights by virtue of this Settlement, and
(iv) be entitled to object to any aspect of this Settlement, or this Litigation.
Each Person requesting exclusion from the Class must personally sign his or her own
individual Request For Exclusion. No Person may opt-out from the Settlement Classes any
other Person or be opted-out by any other Person, and no Person shall be deemed opted-out of
the Settlement Classes through any purported “mass” or “class” opt-outs.
How Do I Object to the Settlement?
If you intend to object to this Settlement, you must send a letter called a “Notice of Intent to
Appear and Object,” postmarked by January 31, 2013, midnight Pacific Time, that includes
your personal signature, your full name and address, and all arguments, citations, and evidence
supporting the objection. The letter must also state that you are a Class Member and indicate
whether you intend to appear at the Fairness Hearing, either with or without counsel. A copy of
this letter must be sent to the Court, to the Claims Administrator, to Class Counsel, and to
Citibank’s Counsel, at the addresses set forth below. Objections must be filed and postmarked
by the Opt-Out/Objection Deadline, January 31, 2013, midnight Pacific Time. Counsel for any
objector must file an appearance by the Opt-Out/Objection Deadline. No Class Member shall be
heard and no papers, briefs or pleadings submitted by such Class Member shall be received and
considered by the Court unless the Court receives the Class Member’s properly completed and
signed Notice of Intent to Appear and Object by the Opt-Out/Objection Deadline. Any Class
Member who fails to timely or properly file a Notice of Intent to Appear and Object shall be

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deemed to have waived his or her objections and be forever barred from making any such
objections in this Action, any appeal or in any other action or proceeding.
Settlement Administrator
In re Citibank HELOC Litigation
Settlement Administrator
PO Box 2838
Portland, OR 97208-2838
Plaintiffs’ Counsel
Jay Edelson, Esq.
Steven L. Woodrow, Esq.
Evan Meyers, Esq.
EDELSON MCGUIRE LLC
350 North LaSalle, Suite1300
Chicago, IL 60654
Tel: [phone]
www.edelson.com

James Patterson
Patterson Law Group
402 W. Broadway, 29th Floor
San Diego, CA 92101
Tel: [phone]
www.pattersonlawgroup.com

Defendant’s Counsel
Lucia Nale, Esq.
Debra Bogo-Ernst, Esq.
Mayer Brown LLP
71 South Wacker Drive
Chicago, IL 60606
Office of the Clerk United States District
Court for the Northern District of California
Office of the Clerk
United States District Court
450 Golden Gate Avenue
San Francisco, CA 94102
www.cand.uscourts.gov
7. If I Remain In The Class, Who Represents Me?

The Court has approved the following attorneys to represent the Class. They are called “Class
Counsel.” You will not be charged for these lawyers. If you want to be represented by your own
lawyer, you may hire one at your own expense.
Class Counsel:

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Jay Edelson, Esq.
Steven L. Woodrow, Esq.
Evan Meyers, Esq.
EDELSON MCGUIRE LLC
350 North LaSalle, Suite1300
Chicago, IL 60654
Tel: [phone]
www.edelson.com

Jim Patterson
Patterson Law Group
402 West Broadway, 29th Floor
San Diego, CA 92101
Tel: [phone]
www.pattersonlawgroup.com

8. What Is The Plaintiffs’ Attorneys’ Fees Award?

The Court has appointed the attorneys listed above to represent the Class. At the Fairness
Hearing described above, Class Counsel will be seeking final approval of the Settlement and will
request approval by the Court of the fee award, consisting of attorneys’ fees and costs up to
$1,214,000 for investigating the facts, litigating the case, and negotiating the settlement in this
matter to be paid by Citibank. Citibank has agreed not to contest this amount.
9. What Is The Incentive Award To The Class Representative?

As part of the preliminary approval of the Settlement, the Court has appointed six Class
Representatives: David Levin, Loren S. Siegel, Gary Cohen, Marie Cohen, Mark Winkler, and
Jennie Lapointe. At the Fairness Hearing, they will ask the Court to award them a collective
incentive award of $36,000, to be divided equally ($6,000 to each of them). Citibank has agreed
not to contest this amount.
10. What Claims Are Being Released In This Settlement?

Unless you timely submit a Request for Exclusion, upon final approval of the Settlement you
will have granted Citibank and all other Released Parties a full and complete release of the
Released Claims, described in Section 1.40 of the Settlement Agreement including, but not
limited to, all claims arising from the beginning of time to the Effective Date of the Settlement
Agreement relating to Citibank’s HELOC suspension and reduction policies, systems, standards
and procedures regarding HELOC suspensions or reductions based, in whole or in part, on
claims that borrower home values have significantly declined, including without limitation, its
HELOC account suspensions and reinstatement standards, processes and policies that were or
could have been alleged in the Plaintiffs’ Complaint, including those belonging to Plaintiffs and
the Releasing Parties.
The exact release language and the definitions of Released Claims, Released Parties, and
Releasing Parties contained in the Settlement Agreement is far more detailed, and you may want
or need to consider it before making your decision about participating in the Settlement.
Likewise, much more detail about all of the provisions is contained in the full Settlement

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Agreement. You can see a complete copy of the Class Action Settlement Agreement by clicking
here. [insert link]
11. What Is Class Counsel’s Opinion Of The Settlement?

Class Counsel have conducted extensive investigation into the factual and legal claims of the
Class and the defenses that might be asserted by Defendant against those claims. Based on their
investigation, Class Counsel believe that the Settlement is fair, reasonable, adequate and in the
best interests of the Class. In making this evaluation, the Plaintiffs and Class Counsel have also
taken into account the expense and length of continued proceedings necessary to continue to
prosecute this class action against Defendant through trial, verdict, judgment, appeals and
collections, and the uncertainty and the risk of the outcome of litigation, especially in complex
action such as this, as well as the difficulties and delays inherent in such actions.
12. When Will The Court Determine The Fairness Of The Settlement?

The Court has given preliminary approval to the Settlement. A final hearing on the Settlement,
which is called a Fairness Hearing, will be held to determine the fairness of the Settlement. At
the Fairness Hearing, the Court will hear any proper objections to the Settlement, as well as
Class Counsel’s request for an award of attorneys’ fees and expenses, and the incentive awards
to the Class Representatives. The Court will hold the Fairness Hearing on March 15, 2013 at
9:00 am in United States Courthouse, Courtroom 7 – 19th Floor, 450 Golden Gate Avenue, San
Francisco, California 94102.
YOU ARE NOT OBLIGATED TO ATTEND THE FAIRNESS HEARING UNLESS YOU
PLAN TO OBJECT TO THE SETTLEMENT IN PERSON.
If the Settlement is not finally approved, the case will proceed as if no settlement had been
attempted or agreed upon. There can be no assurance that if the Settlement is not approved, the
Class will recover more than is provided in the Settlement, or indeed, anything at all.
13. Where Can I Obtain More Information About The Settlement?

Any questions you or your attorney may have concerning this Notice should be directed to Class
Counsel at the address listed below. You may also contact Class Counsel at [phone]
for any reason, including to receive a copy of the Class Action Settlement Agreement or a
hard copy of the Claim Form. If you contact Class Counsel in writing, please include the case
name and number, and your name and address on any letters, not just the envelopes. You may
also read the Class Action Settlement Agreement, by clicking here.
Please do not contact the Court. Instead, to obtain information about the terms and
conditions concerning the Settlement, you may contact Class Counsel, as follows:
Class Counsel:
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Jay Edelson, Esq.
Steven L. Woodrow, Esq.
Evan Meyers, Esq.
EDELSON MCGUIRE LLC
350 North LaSalle, Suite 1300
Chicago, IL 60654
Tel: [phone]
www.edelson.com

Jim Patterson
Patterson Law Group
402 West Broadway, 29th Fl.
San Diego, CA 92101
Tel: [phone]
www.pattersonlawgroup.com

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