SANTA FE, N.M. — Guadalupe Credit Union has agreed to pay at least $565,532 to settle a class action lawsuit alleging it pursued debt collections in New Mexico magistrate courts without representation by a licensed attorney, according to Claim Depot. The credit union is based in Santa Fe.
The plaintiffs alleged the credit union’s actions constituted the unauthorized practice of law and violated the New Mexico Unfair Practices Act. Guadalupe denied the allegations but agreed to settle to avoid the cost and uncertainty of further litigation, Claim Depot reported.
Under the proposed settlement, eligible class members would receive $1,000 each, plus refunds of any money they paid to the credit union after their collection lawsuits were filed.
Eligibility And Payments
The settlement covers individuals against whom Guadalupe filed a collections lawsuit in a New Mexico magistrate court on or after Oct. 7, 2015, without being represented by a New Mexico-licensed attorney, according to Claim Depot.
Class members do not need to submit a claim form to receive payment. Checks will be mailed to the addresses on file approximately 45 days after the court grants final approval.
The deadline to request exclusion from the settlement is Nov. 30, 2026. A final fairness hearing is scheduled for Feb. 3, 2027.
Settlement Costs
According to Claim Depot, the settlement fund includes:
- Payments of $1,000 per eligible class member, plus refunds of collections made after their lawsuits were filed.
- Up to $20,000 in settlement administration costs.
- Service awards of up to $5,000 each for six class representatives, totaling up to $30,000.
Class counsel will seek court approval of attorney fees and costs at a later date. Guadalupe will pay those expenses separately from the settlement fund.
Updating Payment Information
Class members can update their addresses online using the notice ID and PIN provided in their settlement notices, or by mail or email. Mailed or emailed requests must include the person’s full name, previous address, current address and notice ID, Claim Depot reported.
