In January 2009 ACCS and its parent corporations, SCH Corp. and ACCS Corp. filed a bankruptcy petition in the Delaware Bankruptcy Court.  (Civ. No. 09-10198).  ACCS moved quickly to be able to continue operating, and to sell the business to the lender that financed the 2004 purchase of the business.

 

Sale of the ACCS Business

 

To purchase ACCS, in 2004, a group of investors borrowed $30,000,000 from a company called Levine Leichtman Capital Partners III, L.P. (LLCP).  ACCS paid LLCP millions of dollars in interest over the years, but ACCS still owed LLCP more than $30,000,000 in 2009.  ACCS filed the bankruptcy and then transferred its business, but not its liabilities, to LLCP in March 2009.  LLCP set up a new company, National Corrective Group, Inc., (NCG) which is now operating the former ACCS "check diversion" business.  The NCG business is in the same location, using the same management, and in our opinion is using collection practices that are similar to those that led to the lawsuits against ACCS.  However, bankruptcy law allows companies to sell their assets "free and clear" of liability.  So the ACCS business continues, but under a new name: "Corrective Solutions" which is the name that National Corrective Group, Inc. is using.  National Corrective Group claims that it is not liable for any past violations of the law by ACCS.  

 

THERE ARE OTHER DEFENDANTS IN THE ACCS LAWSUITS, AND THE CASES AGAINST THOSE DEFENDANTS ARE CONTINUING.

 

 

ACCS originally proposed a "Liquidation Plan," which it abandoned in August 2009.  The purpose of that Plan appeared to be to protect third parties, such as LLCP and NCG, rather than the creditors, or ACCS.  Therefore, class action plaintiffs objected to that Plan.  ACCS withdrew that Plan and LLCP then proposed a New Liquidation Plan.  Unlike the original Liquidation Plan, third parties are not shielded from liability under the New Plan.  Those who filed timely Proofs of Claim would still have the opportunity to seek compensation from ACCS, but it is not clear that ACCS would have any money to pay claims.   ACCS then proposed an amended Liquidation Plan, and have filed an Amended Disclosure Statement describing the amended Plan.  On November 2, 2009 the Court approved the amended Plan.  In the new Plan, ACCS agreed to pay some money to class members in the California, Florida and Indiana lawsuits.  However, the money is to be paid over a five year period, and it is unclear whether ACCS will ever pay enough money to make it economical to send money to individual class members.  For further information about the status of the bankruptcy, go to the bankruptcy court website, www.deb.uscourts.gov.

 

The planitiffs are continuing to pursue the class action claims against Don Mealing, Lynn Hasney and other non-ACCS defendants.  However, this group sold their control of the business in 2004, and the litigation against them will not affect someone who only paid money after November 10, 2004.  In the meantime, if you receive a letter from a "district attorney bad check restitution program, " it may have been sent by National Corrective Group, Inc.  d/b/a  Corrective Solutions.  If you have any questions, feel free to contact us through the email address or toll-free phone number listed on this web site.