Ever get a "settlement" check in the mail?

[Toto'sDad]

I got a check in the mail yesterday that says it was a settlement check for me against a company that I will not name. I looked it up on the internet and it seems legitimate, but I can't help but think it's some sort of scam. I think I'm just going to the shred the check it's not for very much money, and I'd just as soon not worry about it. Anyone ever get one of these "settlement" checks?

 

[Jim_in_PA]

Yes, and it's usually very easy to ascertain whether or not it's legitimate. Google is your friend.

 

[Marc Morfei]

Sometimes there are class action suits where large numbers of customers as a group are the plaintiffs. You may not even be aware. The company "settles" the lawsuit by offering some cash settlement that gets divided among the recipients. If you received a check, and all you need to do is cash it, I would cash it. If you have to jump through other hoops, like provide them with personal info, etc etc, then maybe be suspicious.

 

[dkmw]

I got $200 from Porsche a couple of years ago! Slightly makes up for what’s known as the “Porsche tax” (service/parts costs).

 

[boris bubbanov]

As long as it is over $ 25.00, I'd check with your bank to see if it seems authentic. If it is, cash it or deposit it.

Lots of Class Action litigation results in a settlement divided as follows:

A) Some Charity or three (or whatever) gets a really sweet donation to their cause(s);

B) The lawyers get a payday and may break even - may be even able to give their staff a little bonus; and

C) Members of the Class (could be dozens, or multiple 100s of thousands) get a check that's normally so small, you wonder why they went to the trouble.

The Rationale is this: To discourage The Company from doing this bad thing again - until next time. What does The Company get? The entire file is SEALED so nobody can figure out what the company actually did or what evidence did them in. In a manner of speaking, this group of lawyers has sold out the next group of people who get screwed in the next (similar) situation. The Next Guys have to reinvent the wheel, every time.

 

[Toto'sDad]

I did research the law firm on google. There was/is a lawsuit settlement going on with the company named in the letter. The only problem I have with the whole thing is that A: If I cash the check, I'm releasing any further interest in the proceedings. B: I don't think I've done business with the company the suit is against in the time period referenced.

My natural suspicious nature wondered if I either cashed the check or deposited it to my account is that they would be able to somehow obtain information from the transaction that could be used to scam me. I feel a little bit like I did one night long ago when the good-looking wife of the biggest, meanest, toughest guy in town wanted to hug my neck. I thought discretion might be the better part of valor, that and a clean conscience.

As long as it is over $ 25.00, I'd check with your bank to see if it seems authentic. If it is, cash it or deposit it.

Lots of Class Action litigation results in a settlement divided as follows:

A) Some Charity or three (or whatever) gets a really sweet donation to their cause(s);

B) The lawyers get a payday and may break even - may be even able to give their staff a little bonus; and

C) Members of the Class (could be dozens, or multiple 100s of thousands) get a check that's normally so small, you wonder why they went to the trouble.

The Rationale is this: To discourage The Company from doing this bad thing again - until next time. What does The Company get? The entire file is SEALED so nobody can figure out what the company actually did or what evidence did them in. In a manner of speaking, this group of lawyers has sold out the next group of people who get screwed in the next (similar) situation.

Thank you, sir! I do appreciate the answer very much!

 

[FendrGuitPlayr]

I think there was a small check a few years back as part of a
class action settlement. It wasn't over $20. but I deposited it and
it was legit.

 

[Toto'sDad]

I don't know how I managed to run the two post above together. I think though, I'll just leave it alone in case I just made it worse!

 

[lammie200]

I have a 3 cent USD check from Ebay that I have not cashed. Freakin' ridiculous.

 

[prairietelecaster]

Not quite a settlement or worth litigious time but I evidently won $250,000 from a publishing company in the 1980's. Turns out they split the winnings amongst numerous winners (which I didn't recall in the fine print options). I received a cheque for .50 cents for my fabulous luck. I didn't cash it. I also won a “Fine Art Print” in the 80's, mailed folded and creased! Guess I should have chosen and paid for the pre-framed option instead of the free unframed print.
Scambled eggs abound!

 

[Danb541]

Yes I've had settlement checks and cashed them no problem. But, I was aware of the situation before getting the checks and had already signed up to be a part of it. It seems odd that if you cash it you're agreeing to exclude yourself from future proceedings. Makes me think they're trying to buy off people to reduce the cost when the big payout happens.
There's a certain genetics company that had a major breach and attempted something similar with me, I declined and will ride it out to the end.

 

[Bob Womack]

I have a 3 cent USD check from Ebay that I have not cashed. Freakin' ridiculous.

Yeah, a friend got an ASCAP check for something like ninety-eight cents. Bravo. The transaction cost more than the payout. He put it on the wall in his studio.

Bob

 

[fsone]

I did research the law firm on google. There was/is a lawsuit settlement going on with the company named in the letter. The only problem I have with the whole thing is that A: If I cash the check, I'm releasing any further interest in the proceedings. B: I don't think I've done business with the company the suit is against in the time period referenced.

My natural suspicious nature wondered if I either cashed the check or deposited it to my account is that they would be able to somehow obtain information from the transaction that could be used to scam me. I feel a little bit like I did one night long ago when the good-looking wife of the biggest, meanest, toughest guy in town wanted to hug my neck. I thought discretion might be the better part of valor, that and a clean conscience.

Thank you, sir! I do appreciate the answer very much!

Looks like you answered your own question, if in doubt don't do it..

 

[TxSouthpaw]

Twenty years ago one showed up from a class action suit against AMEX. IIRC, it had to do with how many decimal points AMEX used to calculate interest. Let's say the settlement was $10 million. The lawyers kept $4 million and I got a check for 27 cents or something like that.

 

[P Thought]

As long as it is over $ 25.00, I'd check with your bank to see if it seems authentic. If it is, cash it or deposit it.

Lots of Class Action litigation results in a settlement divided as follows:

A) Some Charity or three (or whatever) gets a really sweet donation to their cause(s);

B) The lawyers get a payday and may break even - may be even able to give their staff a little bonus; and

C) Members of the Class (could be dozens, or multiple 100s of thousands) get a check that's normally so small, you wonder why they went to the trouble.

The Rationale is this: To discourage The Company from doing this bad thing again - until next time. What does The Company get? The entire file is SEALED so nobody can figure out what the company actually did or what evidence did them in. In a manner of speaking, this group of lawyers has sold out the next group of people who get screwed in the next (similar) situation. The Next Guys have to reinvent the wheel, every time.

Seems to me one of John Grisham's books worked this over; I forget which one. I love Grisham's books

 

[boris bubbanov]

Seems to me one of John Grisham's books worked this over; I forget which one. I love Grisham's books

Hah!

Sounds like the kind of thing John and I (and 4 of his classmates) would've chewed on over Long Island Iced Teas, up there at an establishment in Oxford, in 1980-1. All of John's friends from then are grumpy, that he's doing so well! :^)

 

[nvilletele]

Yeah, a friend got an ASCAP check for something like ninety-eight cents. Bravo. The transaction cost more than the payout. He put it on the wall in his studio.

Bob

When I was living in Japan, I once got a bill from the IRS for like $1.87 in interest, and they had spent like $2.85 to mail it to me.

 

[P Thought]

Hah!

Sounds like the kind of thing John and I (and 4 of his classmates) would've chewed on over Long Island Iced Teas, up there at an establishment in Oxford, in 1980-1. All of John's friends from then are grumpy, that he's doing so well! :^)

He's written two that I think are great--the rest tend to be good--A Time To Kill and Bleachers

 

[Hey_you]

I'm waiting for my up to $100 from a recently settled suit. Company says checks will be cut by the end of the year. Probably end up with .10 tho.

 

[Knows3Chords]

Should be a regular thing in the future for everybody that has had their personnel data stolen from a large company's security breach. Apparently it's just cheaper to settle out of court and pay each of the millions affected of a small pittance instead of actually paying for the people and infrastructure required to have a secure system.