$3.25M Bank of America Settlement Resolves Class Action Lawsuit Over Alleged Car Repo Notice Violations
Nelson et al. v. Bank of America, National Association
Filed: November 4, 2022 ◆§ 2:22-cv-04440
A class action alleges Bank of America has failed to provide consumers with proper notice before repossessing and reselling their financed vehicles.
A $3.25 million settlement has been reached to resolve a proposed class action lawsuit that claimed Bank of America failed to provide borrowers with timely notice of their rights after repossessing and reselling their financed vehicle.
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The official website for the Bank of America class action settlement can be found at NelsonClassAction.com.
The $3,250,000 deal, which was granted preliminary approval by the court on October 4, 2024, covers any borrowers who were sent a notice from Bank of America following the repossession of their vehicle between December 23, 2016 and February 16, 2024.
According to the website, eligible class members do not need to do anything to receive Bank of America settlement benefits. Individual cash payouts and other benefits will be provided automatically if the deal receives final approval from the court, the site says.
Per the website, class members may receive a pro-rated share of what remains of the settlement fund after the payment of associated attorneys’ fees, costs, service awards and administration fees.
You can see the approximate amount of your individual payout by using the Estimated Award Eligibility page on the website, which requires you to input the unique Notice ID and PIN located on the settlement notice you should have received.
Related Reading: Bank of America Hit with Another Class Action Over Alleged Failure to Provide Proper Car Repo Notices
The site notes that Bank of America settlement cash payouts will be issued by check unless another payment method is chosen on the website’s Select Payment Method page.
In addition, as part of the deal, Bank of America will request that credit reporting agencies Equifax, Experian and TransUnion delete class members’ auto loan histories with the bank from their credit reports, the site states.
The court will determine whether to grant final approval to the terms of the Bank of America settlement during a hearing set for February 18, 2025 in Philadelphia. If the terms are ultimately approved, and after any appeals are resolved, payouts will be issued to eligible class members within 45 days of the date the deal goes into effect, the settlement agreement relays.
The lawsuit against Bank of America alleged the bank violated a Pennsylvania law that requires companies to provide borrowers with notice of repossession and 15 days to redeem their vehicle before it is resold. The class action suit claimed the bank’s notices did not give consumers the full 15 days to act before resale, as required by law.
Check out ClassAction.org’s lawsuit list for current class action lawsuits and investigations.
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