HOUSTON — Drive Financial recently settled a class action lawsuit, which involved more than 1,150 Texas residents who claimed Drive violated numerous federal and state consumer protection laws while attempting to collect debts.

Attorney Richard Tomlinson said he filed suit (Case 4:06-cv-00068) against drive last year on behalf of Houston resident Velincia Barber and others.

The suit charged that Drive sent threatening letters to Texas residents who fell behind in their payments. According to Tomlinson, the letters threatened wage garnishment and purported to be from an attorney or law firm.

The settlement terms require Drive to pay $250,000, in addition to covering Tomlinson's legal fees and court costs.

U.S. District Judge Sim Lake of the Southern District of Texas ruled that the settlement should be approved as fair, reasonable and adequate in the best interests of the members of the class.

Class members were notified of the settlement and were entitled to submit objections to the court prior to the hearing before Judge Lake. According to Tomlinson, no objections were filed.

Tomlinson said he looks "forward to the prompt distribution of the settlement proceeds."

SubPrime Auto Finance News contacted Drive for a comment, but as of press time, the company has not responded.