UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA, WESTERN DIVISION

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1 Case :-cv-0-mmm-rao Document Filed 0/0/ Page of Page ID #: SANTA MONICA, CALIFORNIA 00 TEL (0) -00 FAX (0) JOHN C. REDDING (State Bar No. 0) jredding@buckleysandler.com JESSICA POLLET (State Bar No. ) jpollet@buckleysandler.com 00 Wilshire Boulevard, Suite 000 Santa Monica, California 00 Telephone: (0) -00 Facsimile: (0) -0 Attorneys for Defendant, American Honda Finance Corporation UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA, WESTERN DIVISION UNITED STATES OF AMERICA, v. Plaintiff, AMERICAN HONDA FINANCE CORPORATION, Defendant. Case No. :-cv-0 NOTICE OF MOTION AND UNOPPOSED MOTION FOR APPROVAL TO DISTRIBUTE CONSUMER FINANCIAL EDUCATION FUND

2 Case :-cv-0-mmm-rao Document Filed 0/0/ Page of Page ID #: SANTA MONICA, CALIFORNIA 00 TEL (0) -00 FAX (0) NOTICE OF MOTION AND UNOPPOSED MOTION TO ALL PARTIES AND THEIR COUNSEL OF RECORD: PLEASE TAKE NOTICE that Defendant American Honda Finance Corporation moves for approval to distribute the $ million fund established under the terms of the settlement of this case for the administration and operation of consumer financial education programs. Pursuant to Local Rule -, Counsel for Defendant has met and conferred with Counsel for the United States, and the United States does not oppose this motion. DATED: May, 0 Respectfully submitted, By: /s/ John C. Redding John C. Redding Jessica Pollet Attorneys for Defendant, American Honda Finance Corporation

3 Case :-cv-0-mmm-rao Document Filed 0/0/ Page of Page ID #: SANTA MONICA, CALIFORNIA 00 TEL (0) -00 FAX (0) MEMORANDUM OF POINTS AND AUTHORITIES Defendant American Honda Finance Corporation ( Defendant or AHFC ) moves the Court to enter the attached proposed order approving the distribution of a $ million fund for the administration and operation of consumer financial education programs under the terms of the settlement in this case. INTRODUCTION On July, 0, this Court entered a Consent Order resolving claims asserted by the United States against Defendant. Under paragraph of the Consent Order, Defendant was to submit a proposal to distribute a $ million fund for the operation and administration of consumer financial education programs Such a proposal was subject to non-objection by Plaintiff and subject to approval by the Court prior to distribution of the funds. These funds constitute payment for services rendered by the organizations proposed below in connection with this case. In accordance with Paragraph of the Consent Order, and consistent with Local Rule -, Counsel for Defendant has consulted with, and obtained the nonobjection of, the United States regarding the proposal and this unopposed motion seeks the Court s approval with respect to this aspect of the settlement administration. PROPOSED FUND DISTRIBUTION The organizations designated under this proposal to receive funds are engaged in providing financial counseling or literacy across the country and will use the funds for one or more of the following purposes: classes on vehicle financial

4 Case :-cv-0-mmm-rao Document Filed 0/0/ Page of Page ID #: SANTA MONICA, CALIFORNIA 00 TEL (0) -00 FAX (0) education specifically or on consumer financial education more broadly, of which vehicle financing is a subset. The proposed $ million consumer literacy fund allocation is for the following organizations, and amounts allocated based on each proposal: American Financial Services Association Education Foundation, $,000 National Foundation for Credit Counseling, $0,000 Operation HOPE, $0,000 California Council on Economic Education, $,000 Urban League, $00,000 The proposals from each group vary slightly, but are all focused on the issue of consumer automobile finance, as described more fully here: American Financial Services Association Education Foundation: This proposal, entitled Understanding Vehicle Financing, will offer free online financial education to educators and students. The proposal presents a framework for the training, covering direct financing and dealership financing, and the benefits and drawbacks each presents. It also encourages the consumer to shop around and compare, and to consider buying versus leasing and the benefits and drawbacks of each. It explains issues relating to having or needing a co-signer, and provides a good glossary for the consumer s use. National Foundation for Credit Counseling ( NFCC ): The NFCC implemented a consumer initiative called the Sharpen Initiative which includes a

5 Case :-cv-0-mmm-rao Document Filed 0/0/ Page of Page ID #: SANTA MONICA, CALIFORNIA 00 TEL (0) -00 FAX (0) Three-Step Personal Financial Stabilization Program. This program consists of a set of financial education and counseling services provided by NFCC-certified counselors, as well as pertinent community and social services resources. The counseling services and community workshops are available in English and Spanish, and in some communities with a large concentration of other language minorities, the group offers services and workshops in up to other languages beyond English and Spanish. Operation HOPE: This proposal consists of two parts. First, an online learning course for consumers who are seeking to finance a vehicle, including information about the protections afforded under the Equal Credit Opportunity Act (ECOA) and other fair lending laws. This program also includes access to a live counseling session with a HOPE certified financial management counselor; and secondly, programs sponsored through HOPE s Adult Empowerment Division, an education and one-on-one counseling delivery system with the goal of changing the misconceptions consumers have of finance and the banking system and working directly with clients to improve their financial profile. California Council on Economic Education: The group s proposal includes a vehicle financing curriculum addressing car financing, insurance, and comparison shopping. It also addresses issues under TILA, ECOA, and other fair lending statutes. Its intended audience are K- teachers and students, as its mission is to ensure that as students gain a greater understanding of the economic value of their

6 Case :-cv-0-mmm-rao Document Filed 0/0/ Page of Page ID #: SANTA MONICA, CALIFORNIA 00 TEL (0) -00 FAX (0) skills in the workplace, the power of their choices, and the importance of responsibly managing their personal finances, they can grow into adults that can participate confidently and productively in their local and global economies. Urban League: This group will develop a consumer auto finance module for its existing financial education program. The module will be offered at any Urban League affiliate that expresses an interest and has the capacity to offer the training. Based on information provided by the organizations, Defendant expects the participant demographics to represent the target community at large. All events will be open to individuals free of charge without regard to race or national origin. However, considering the populations these organizations reach historically, Defendant expects the programs are likely to serve a high proportion of African- American, Hispanic and Asian/Pacific Islander borrowers. Defendant will distribute the funds to these organizations pursuant to written contracts that will include terms designed to ensure the funds will be used only for the purposes described in the consent order, with a cap for administrative expenses. The contracts will also require preclearance of any material change, and a report noting how the funds have been used. Defendant will retain the right to redistribute funds to another approved organization, if under- or unused and the right to recover all or part of a grant for non-compliance with the proposal or the contract.

7 Case :-cv-0-mmm-rao Document Filed 0/0/ Page of Page ID #: SANTA MONICA, CALIFORNIA 00 TEL (0) -00 FAX (0) CONCLUSION For the foregoing reasons, Defendant moves this Court to enter the attached proposed order approving the distribution of the $ million fund for the administration and operation of consumer financial education programs. Plaintiff United States does not oppose this Motion. DATED: May, 0 Respectfully submitted, By: /s/ John C. Redding John C. Redding Jessica Pollet Attorneys for Defendant, American Honda Finance Corporation

8 Case :-cv-0-mmm-rao Document - Filed 0/0/ Page of Page ID #:0 SANTA MONICA, CALIFORNIA 00 TEL (0) -00 FAX (0) UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA, WESTERN DIVISION UNITED STATES OF AMERICA, v. Plaintiff, AMERICAN HONDA FINANCE CORPORATION, Defendant. Case No. :-cv-0 [PROPOSED] ORDER GRANTING UNOPPOSED MOTION FOR APPROVAL TO DISTRIBUTE CONSUMER FINANCIAL EDUCATION FUND Case No. :-cv-0 [PROPOSED] ORDER GRANTING UNOPPOSED MOTION FOR APPROVAL TO DISTRIBUTE CONSUMER

9 Case :-cv-0-mmm-rao Document - Filed 0/0/ Page of Page ID #: SANTA MONICA, CALIFORNIA 00 TEL (0) -00 FAX (0) Defendant American Honda Finance Corporation moves for approval to distribute the $ million fund established under the terms of the settlement of this case for the administration and operation of consumer financial education programs (the Consumer Financial Education Fund ). Plaintiff United States does not oppose this motion. After considering the paper submitted in connection with the motion, and good cause appearing, IT IS HEREBY ORDERED that Motion for Approval to Distribute Consumer Financial Education Fund is GRANTED. IT IS SO ORDERED: DATED:, 0 United States District Judge Case No. :-cv-0 [PROPOSED] ORDER GRANTING UNOPPOSED MOTION FOR APPROVAL TO DISTRIBUTE CONSUMER

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