Bank of America Hit with Another Class Action Over Alleged Failure to Provide Proper Car Repo Notices

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Two Pennsylvania residents have filed a proposed class action against Bank of America over its alleged failure to provide timely notice when repossessing and reselling a consumer’s financed vehicle.

According to the nine-page lawsuit, Bank of America, a regular financier of vehicles in Pennsylvania, has run afoul of the state’s Uniform Commercial Code, which requires companies to provide consumers with proper notice of repossession and 15 days to redeem their automobile before it is resold. The plaintiffs, after having their respective vehicles repossessed by the bank, received notice of the defendant’s intent to resell the cars in less than the 15 days required by law, the suit alleges.

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Per the case, in May 2021, Bank of America declared a default of payment on one plaintiff’s vehicle, which the consumer initially financed by the bank in February 2016. That same month, the vehicle was repossessed, the complaint says.

By law, notice must be given to the borrower of the repossession, how many days they have to act before resale, whether the sale will be public or private, and other information, the filing explains.

However, Bank of America’s notice to the plaintiff “misstate[d] and understate[d]” the number of days he had to redeem his vehicle, the lawsuit alleges. Per the case, the notice—which read that the bank “will sell the 2013, FORD, EXPLORER at private sale sometime after May 27, 2021”—gave the plaintiff just 13 days to act to redeem the car before resale, not the 15 days required by Pennsylvania law.

The second plaintiff had the same experience when her vehicle was repossessed by the defendant in September 2021, the suit relays. The notice the woman received informed her of the bank’s intent to sell the car in mid-October of that year, giving her only 14 days to redeem it, the complaint claims.

The lawsuit looks to represent anyone who, since January 20, 2017, (a) financed the purchase of a vehicle for consumer use through Bank of America or financed the purchase through another entity but such finance agreement was thereafter assigned to the bank, (b) had the vehicle repossessed by the bank, and (c) had a Pennsylvania address at the time of repossession.

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