Tidewater Finance Co.

Virginia Beach, VA: (Dec-08-07) A class action lawsuit was brought against Virginia Beach-based Tidewater Finance Co., alleging that the company had questionable repossession practices. Tidewater Finance provides loans for vehicles, furniture and homes. Its motor credit division provides loans nationwide, primarily to low-income borrowers. Tidewater is owned by L.M. Sandler & Sons, the Beach-based real-estate development company.

The suit stemmed from Tidewater's repossession in 2004 of a Ford minivan that belonged to Lawanda and Donald Wade Jr., who filed a complaint stating that after they missed payments on the minivan, they received a notice that Tidewater planned to auction off the vehicle. The suit claimed that the notice listed the sale location as Columbus Fair Auto Auction, but didn't give an address. The Wades also alleged that the company didn't tell them they could get the minivan back by paying $25 of the $300 repossession fee, with the rest tacked onto their loan balance.

Though the company denied the allegations, stating that it has always complied with state laws with regards to its repossession practices, it agreed to establish a $700,000 settlement fund and forgo outstanding payments of at least $2.5 million owed to the company. Additionally, Tidewater also has agreed to wipe out any record of deficient balances, which would improve the credit scores of the people in the suit. [HAMPTON ROADS: REPOSESSION SETTLEMENT]