Bank of America has recently agreed to a major class action settlement, offering $3.25 million to borrowers in Pennsylvania. The case involves people whose cars were repossessed by the bank but who were not properly informed about their rights after the repossession. The issue revolves around legally required details that were missing from the bank’s notices.
This situation came to light when several borrowers realized that the notices they received after their vehicles were taken did not include the specific sale date of the vehicles. According to Pennsylvania law, this sale date is very important. Borrowers must be given at least 15 days’ notice before their repossessed car is sold. Without this date, borrowers can lose the chance to pay what they owe, recover the vehicle, or work out another solution.
While Bank of America has not admitted they did anything wrong, they decided to settle the case. By settling, they avoid a long court process and offer compensation to affected people. The benefits of the settlement include cash payouts and credit report corrections, which can make a big difference in someone’s financial life. This article will explain everything you need to know about this case, including who qualifies, what the benefits are, how to get them, and what deadlines you need to watch out for.
What Caused the Lawsuit Against Bank of America?
The lawsuit, known as Nelson, et al. v. Bank of America NA (Case No. 5:23-cv-00255-JS), was filed because the bank allegedly violated Pennsylvania’s consumer protection laws. These laws are in place to protect people when their vehicles are repossessed due to unpaid loans. One specific rule says that banks must send a letter after repossession that includes the date the vehicle will be sold, which should be at least 15 days in the future.
This time window is important because it gives borrowers a chance to pay off the loan, settle the debt, or ask for alternative options. The lawsuit claimed that Bank of America failed to include this critical information in its notices between December 23, 2016, and February 16, 2024.
As a result, many people didn’t have a fair chance to respond. They didn’t know when their cars would be sold, and many ended up losing their vehicles or suffering from lower credit scores. Borrowers claimed this caused serious financial harm. Even though the bank didn’t admit it was wrong, it agreed to pay millions and fix the credit issues to settle the matter.
Who Can Receive Benefits from the Settlement?
The settlement covers a specific group of people who meet certain conditions. If you are wondering whether you qualify, here’s what you need to check:
You are eligible if:
- You live in Pennsylvania.
- You had a vehicle repossessed by Bank of America between December 23, 2016, and February 16, 2024.
- You received a post-repossession letter that did not include the required sale date.
If you meet all three of these conditions, then you are automatically included in the settlement group. That means you do not have to file any claim forms to get your benefits. You’ll receive your payment and credit correction automatically — unless you decide to opt out or object to the settlement.
What Are the Benefits for Eligible Borrowers?
Borrowers who are part of this settlement can expect two major benefits:
1. Cash Payments from the $3.25 Million Fund
If you’re part of the group, you’ll get a share of the total settlement amount. The amount you receive will depend on how many total borrowers are included. The more people there are, the smaller each payment will be.
To estimate your payout:
- Visit www.NelsonClassAction.com
- Use the “Estimated Award Eligibility” tool by entering your personal and loan details
This tool will give you a rough idea of how much money you could get from the settlement.
2. Credit Report Fixes
One of the most valuable parts of the settlement is the impact on your credit history. Bank of America has agreed to contact the major credit reporting agencies — Equifax, Experian, and TransUnion — and ask them to remove negative entries tied to these repossessions.
These changes can:
- Improve your credit score
- Help you qualify for better interest rates on loans, mortgages, or credit cards
- Reduce the long-term damage caused by the vehicle repossession
How to Find Out If You’re Eligible
To check your status and see if you’re included in the settlement, just follow these steps:
- Go to www.NelsonClassAction.com
- Click the “Check Eligibility” button
- Enter the necessary information — such as your name, address, and auto loan account number
- Review the results and estimated payment amount
It’s also a good idea to check your credit report after the settlement is finalized. You can get free credit reports from AnnualCreditReport.com or use paid credit monitoring services.
What Should You Do by These Dates?
- If you agree with the settlement, you don’t need to do anything. You’ll receive your benefits after the court approves the deal.
- If you don’t agree or want to sue Bank of America separately, you must submit a request to opt out before December 18, 2024.
- If you want to object to the terms but stay in the group, you must also write a formal objection letter before the deadline.
Will You Need to Fill Out a Claim Form?
No. One of the most convenient parts of this settlement is that it’s automatic. You don’t need to submit any paperwork to get your money or credit fix — unless you want to opt out or object.
Need Help? Contact the Claims Administrator
If you have any questions or need assistance, you can contact the claims administrator directly:
Mailing Address:
Nelson v. Bank of America Class Settlement
c/o Settlement Administrator
P.O. BOX 23698
Jacksonville, FL 32241-3698
Email: info@NelsonClassAction.com
Website: www.NelsonClassAction.com
There, you can find more details, updates, and important legal documents about the case.