People whom Guadalupe Credit Union sued in a New Mexico magistrate court without a licensed attorney are set to receive $1,000 plus a refund of what the credit union collected from them after filing the lawsuit, with no claim form, under a proposed $565,532 class action settlement. The opt-out and objection deadline is November 30, 2026.
Current Status
Payments are automatic, and no claim form is needed. The deadline to opt out or object is November 30, 2026. The final fairness hearing is set for February 3, 2027 at 10:00 a.m. in the First Judicial District Court in Santa Fe; the court has not yet decided whether to approve the settlement, and no payment has been made as of October 8, 2026.Free settlement alerts
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What Changed Recently?
The First Judicial District Court in Santa Fe County preliminarily approved the settlement in September 2026, and notices went out to class members in English and Spanish. The case was filed in October 2019 and alleges that Guadalupe Credit Union engaged in the unauthorized practice of law by having non-attorney employees file debt collection lawsuits for it in New Mexico magistrate courts, in violation of the state's unauthorized practice of law statutes and its Unfair Practices Act.The district court had dismissed the case, but the New Mexico Supreme Court ordered it reinstated in an October 28, 2024 opinion, holding that corporations such as Guadalupe must appear in court through licensed counsel unless court rules allow otherwise. Individuals can represent themselves, which is known as appearing pro se, but the court said a corporation cannot. Guadalupe Credit Union denies the material allegations and all liability, and the notice says it has not admitted doing anything wrong by settling.
Who Qualifies?
Under the settlement agreement and the settlement website, the class is all persons against whom Guadalupe Credit Union filed a collection action in a New Mexico magistrate court on or after October 7, 2015 without being represented by a New Mexico licensed attorney in that action. The mailed notice describes the class as people sued in Santa Fe County Magistrate Court. The settlement agreement says Guadalupe's records identify 197 class members, and the credit union has already given the class list to class counsel.The credit union, anyone with a controlling interest in it, its current and former owners, directors, officers and counsel, their immediate families and anyone who opts out are excluded.
How Much Can You Get?
Each class member is to receive:- $1,000, and
- a refund of the amount Guadalupe Credit Union actually received from that person after it filed the collection lawsuit and in connection with that lawsuit. The refund amounts have been agreed by the parties from the credit union's records. If a collection lawsuit named more than one person, the refund is paid jointly unless other arrangements are made with the administrator.
Guadalupe Credit Union will pay $565,532 into a settlement fund that covers the class payments, service awards of up to $5,000 for each of the six class representatives, and settlement administration, which the credit union pays up to $20,000. Court-approved attorneys' fees and costs are paid by the credit union separately, not from the money paid to class members. Nothing reverts to the credit union; leftover money and uncashed checks go to the New Mexico Center on Law and Poverty. The credit union also agreed to stop filing lawsuits without a licensed attorney.
What Proof or Notice ID Is Required?
None. The settlement agreement says class members do not have to do anything to be paid other than not exclude themselves. The notice asks class members to make sure the administrator has their contact information; the settlement website's address-update form uses the Notice ID and PIN from the notice. If a class member has died, the agreement says payment goes to an heir or the estate with acceptable proof.What Is the Deadline?
There is no claim deadline. Requests to opt out must be mailed and postmarked by November 30, 2026. Objections must be sent in writing to the court, class counsel and the credit union's counsel by November 30, 2026.How Do You Take Action?
No action is needed to be paid. The official Salas v. Guadalupe Credit Union settlement website posts the notice in English and Spanish, the settlement agreement and the court orders, and has a form for updating an address.What Happens Next?
Judge Francis J. Mathew will hold the final fairness hearing on February 3, 2027 at 10:00 a.m. in the First Judicial District Court in Santa Fe. If the settlement is approved, the agreement says checks go out no later than 14 days after final approval. Checks are valid for 60 days.Sources and Verification
• Salas v. Guadalupe Credit Union settlement website — settlement agreement, preliminary approval orders and notices• Settlement website — Frequently Asked Questions
• New Mexico Supreme Court opinion, Salas v. Guadalupe Credit Union, No. S-1-SC-39641 (October 28, 2024)
Questions
Do Guadalupe Credit Union class members need to file a claim?
No. The settlement agreement says class members do not have to do anything to be paid other than not exclude themselves. The notice says they should make sure the settlement administrator has their current contact information.
Who is in the Guadalupe Credit Union settlement class?
People against whom Guadalupe Credit Union filed a collection lawsuit in a New Mexico magistrate court on or after October 7, 2015 without being represented by a New Mexico licensed attorney. The settlement agreement says Guadalupe's records identify 197 class members.
How much does each class member receive?
$1,000, plus a refund of the amount Guadalupe Credit Union actually received from that person after it filed the collection lawsuit. If the collection lawsuit named more than one person, the refund is paid jointly unless other arrangements are made with the administrator.
Do attorneys' fees reduce the payments?
No. Under the settlement agreement, Guadalupe Credit Union pays court-approved attorneys' fees and costs separately from the money paid to class members. Service awards of up to $5,000 for each of the six class representatives come from the settlement fund.
How are Guadalupe Credit Union settlement payments sent?
By check, no later than 14 days after final approval under the settlement agreement. Checks are valid for 60 days, and uncashed money goes to the New Mexico Center on Law and Poverty.
