Bank of America has agreed to a $3.25 million class action settlement to resolve claims that it failed to comply with Pennsylvania law when repossessing vehicles. This settlement affects borrowers in Pennsylvania whose vehicles were repossessed, and who received deficient notices from the bank between December 23, 2016, and February 16, 2024. Below is an overview of the eligibility criteria, benefits, and important deadlines.
Overview of the Settlement
The lawsuit, Nelson, et al. v. Bank of America NA, claims that Bank of America failed to include required details in repossession notices, such as a specific date after which the vehicle would be sold. Pennsylvania law requires this date to be at least 15 days after the notice is issued. Plaintiffs argued that the lack of this information caused financial harm and confusion.
Although Bank of America denies any wrongdoing, it has agreed to the settlement to avoid further litigation.
Summary of Benefits Table
| Benefit | Details |
|---|---|
| Cash Payments | Proportional share of the $3.25M fund. |
| Credit Relief | Removal of auto loan references from credit reports. |
| Claim Form Requirement | Not required; automatic inclusion. |
| Opt-Out Deadline | December 18, 2024. |
| Final Hearing | February 18, 2025. |
Key Benefits for Class Members
Eligible participants in the settlement will receive the following:
- Cash Payments:
Class members will receive a proportional share of the net settlement fund. The amount each participant receives will depend on the number of claimants. - Credit Relief:
The bank will request that credit reporting agencies delete references to affected auto loan accounts. This may positively impact credit scores for eligible participants. - No Claim Form Needed:
Class members will automatically receive benefits if they do not opt out of the settlement.
Eligibility Criteria
You may qualify for the settlement if:
- Bank of America repossessed your vehicle in Pennsylvania.
- You received a repossession notice between December 23, 2016, and February 16, 2024.
Important Dates
- Opt-Out Deadline: December 18, 2024.
If you do not wish to participate, you must request exclusion by this date. - Final Approval Hearing: February 18, 2025.
The court will decide whether to grant final approval for the settlement during this hearing. If approved, payments and credit relief will follow. - Claim Deadline: No separate claim form is required, as eligible participants will automatically be included in the settlement.
How to Participate
- Automatic Participation:
Borrowers who meet the eligibility requirements will be included in the settlement unless they choose to opt out. - Opt-Out or Object:
If you wish to exclude yourself from the settlement or raise objections, you must submit your request by December 18, 2024.
Legal and Administrative Details
- Case Name: Nelson, et al. v. Bank of America NA, Case No. 5:23-cv-00255-JS.
- Claims Administrator: Nelson v. Bank of America Class Settlement
P.O. Box 23698, Jacksonville, FL 32241-3698. - Settlement Website: Visit the official settlement website for further details.
FAQs
1. Do I need to file a claim to receive benefits?
No, eligible participants will be automatically included.
2. What if I want to opt out of the settlement?
You can request exclusion by submitting a written request before December 18, 2024.
3. How will the cash payment amount be determined?
The amount will depend on the number of class members and the size of the net settlement fund.
4. How can I confirm my eligibility?
Check the settlement website or contact the claims administrator for verification.
5. What happens during the final approval hearing?
The court will review and decide whether the settlement terms are fair. Payments will proceed if approved.
Final Thoughts
This $3.25 million settlement provides relief to Pennsylvania borrowers impacted by improper vehicle repossession practices. Eligible participants should monitor the settlement timeline and ensure they understand their rights under the agreement.