Bank of America $3.25M Nelson Repossession Settlement

If you had a vehicle repossessed by Bank of America between December 23, 2016, and February 16, 2024, you may be eligible to claim a portion of a class action settlement.

Bank of America has agreed to pay $3,250,000 to settle a class action lawsuit for allegedly failing to provide proper notice to borrowers after vehicle repossession.

Who is part of the settlement?

To be part of the class:

• You received a notice from Bank of America after your vehicle was repossessed
• The repossession occurred between December 23, 2016, and February 16, 2024
• You reside in Pennsylvania and were affected by the alleged improper notice

How much is the payout per person?

The settlement provides both a cash component and credit reporting relief.

Cash Payment: Bank of America has agreed to establish a settlement fund of $3,250,000. After deducting administrative costs, attorney fees, and service awards, the remaining funds will be distributed among class members.

The exact amount each member will receive depends on the number of valid claims filed and the total net settlement fund available.

Credit Reporting Relief: Bank of America will request credit reporting agencies to remove any reference to your auto loan account with them.

Class members do not need to take any action to receive their settlement benefits. Payments will be automatically distributed to eligible class members, and credit reporting relief will be requested on their behalf.

Important dates

• Deadline to Opt Out or Object: December 18, 2024
• Fairness Hearing: February 18, 2025

When is the Nelson v. Bank of America Settlement payout date?

The Court will hold a Fairness Hearing on February 18, 2025, to decide whether to approve the settlement. If approved, payments will be distributed to class members, and credit reporting relief will be requested.

Why is there a class action settlement?

The lawsuit claims that Bank of America violated Pennsylvania law by failing to send proper notice to borrowers after repossessing their vehicles. The settlement avoids the costs and risks of continued litigation and provides compensation to affected class members. Bank of America denies any wrongdoing but agreed to settle to avoid further legal expenses.