Commerce Bank $45 Million Repossession Notice Settlement

If you owned property repossessed by Commerce Bank and were mailed a pre or post-sale notice, you may be eligible to claim benefits from a class action settlement.

Commerce Bank has agreed to pay $45,000,000 to settle a class action lawsuit for alleged violations of statutory requirements related to repossession notices. This settlement resolves a dispute over whether Commerce Bank sent proper notices and explanations when attempting to collect on loans by repossessing and selling property.

Who are the class members?

• You had a consumer loan agreement with Commerce Bank or an agreement assigned to Commerce Bank.
• Your property was repossessed by Commerce Bank.
• You received a presale or post-sale notice within the applicable statute of limitations.

However, there are exclusions to this class:

• Individuals that had a final deficiency judgment obtained against them or who filed for bankruptcy after receiving a presale notice
• And whose bankruptcy ended in discharge rather than dismissal

What benefits and payments are available to class members?

The settlement provides two forms of compensation totaling $45 million in total value: deficiency adjustments and cash payments.

• Deficiency Adjustments
• As of June 1, 2024, Commerce Bank has ceased collecting any money it claimed class members owed after repossessing properties. These balances will be adjusted to $0.
• These balances are estimated to be $27 million

• Cash Payments
• The amount each person receives will depend on their specific loan details.
• Commerce Bank has established an $18 million cash fund for payments

How to get settlement benefits & payment

Class members do not need to take any action to receive benefits. Payments will be distributed automatically if the settlement is approved.

How is the $45,000,000 settlement fund distributed?

The settlement fund of $45,000,000 will cover:

• $18,000,000 for the cash fund to pay class members.
• $27,000,000 for deficiency balance adjustments.
• Attorney fees and expenses, not exceeding 35% of the settlement value.
• Payments to class representatives Melissa Kirkpatrick and Rebecca Palmer.

Important dates

• Exclusion Deadline: September 19, 2024
• Final Approval Hearing: October 30, 2024

When is the Commerce Bank Settlement payout date?

Payments will be made after the settlement is approved and any appeals are resolved.

What happens next?

The court will hold a final approval hearing on October 30, 2024. If approved, the settlement will proceed, and payments will be distributed to class members.