Olson et al. v. Kentucky Housing Corporation (“KHC”)

Michael and Brea Olson (The Class Representatives) allege that Kentucky Housing Corporation (KHC) failed to file certain notices regarding mortgage payment changes and/or other notices as required by Rule 3002.1 of the Federal Rules of Bankruptcy Procedure and that KHC improperly collected attorney fees from Class Representatives in chapter 13 bankruptcy cases.  KHC denies any liability to anyone for these alleged acts.

You received a Notice because records with the Bankruptcy Court for the Eastern and Western Districts of Kentucky and/or KHC show that you had a mortgage held or serviced by KHC on or after January 1, 2012, you were a debtor in a chapter 13 bankruptcy, and KHC may have failed to file certain notices and/or collected allegedly unlawful attorney fees.

You may be a class member if you had a mortgage held or serviced by Kentucky Housing Corporation (KHC) on or after January 1, 2012, and were a debtor in a chapter 13 bankruptcy.

You can file a Claim on the Submit Claim page of the Settlement website or mail your detachable claim form to the Settlement Administrator: 1650 Arch Suite, Suite 2210, Philadelphia, PA 19103. All claims must be postmarked or filed electronically by April 24, 2023.

KHC will create a $305,241 Settlement Fund (“Fund”). You may seek a payment from the Fund up to $337.50 for each instance in which KHC failed to timely file a notice of mortgage payment change. You may also seek a payment from the Fund up to $25.00 for each instance in which KHC filed a proof of claim or a notice for the collection of post-petition attorneys’ fees. Payment amounts from the Fund may be less if there are insufficient funds to pay all claims up to the maximum amounts. You must file a claim to receive these benefits.

Before Settlement benefits can be awarded, the Settlement has to be approved. The Court will hold a Final Fairness Hearing on May 9, 2023, at 10:30 a.m. ET, to decide whether to approve the Settlement.

Unless you exclude yourself, you stay in the Class, and that means that you can't sue, continue to sue, or be part of any other lawsuits against Defendant about the legal issues in this case.

If you do not want to be legally bound by the Settlement, you must exclude yourself by completing and mailing a request for exclusion, postmarked no later than April 24, 2023 to: Kentucky Housing Corporation Class Action Settlement, c/o Settlement Administrator, P.O. Box 58220, Philadelphia, PA 19102.

If you request to be excluded, you will not receive any Settlement benefits. Also, you cannot object to the Settlement. You will not be legally bound by anything that happens in the Action. You may be able to sue Defendant in the future about the legal issues in the case.

You can object to the Settlement by submitting your objection to the Settlement Administrator by mail to: Kentucky Housing Corporation Class Action Settlement, c/o Settlement Administrator, P.O. Box 58220, Philadelphia, PA 19102 or on the Object to the Settlement Page of the Settlement website, the Court, and the attorneys for the parties postmarked no later than April 24, 2023.

If you do nothing, you will not receive any benefits from this Settlement. Unless you exclude yourself from the Class, you won't be able to start a lawsuit, continue with a lawsuit, or be part of any other lawsuits against the Defendant about the legal issues resolved by this Settlement, ever again.

For more information, please visit the Important Documents page where you can review relevant Court pleadings, including the Settlement Agreement and Release. You may also contact the Settlement Administrator toll-free at 1-855-565-1222 or you may email the Settlement Administrator at Info@KHCSettlement.com.