Bank of America has agreed to settle a class action lawsuit for $3.25 million. This case is about how the bank handled vehicle repossessions in Pennsylvania. From 2016 to 2024, the bank was accused of not properly informing borrowers about when their repossessed vehicles would be sold.
The law in Pennsylvania requires lenders to give a clear 15-day notice after a car is taken before selling it. But the bank reportedly missed including this key detail in their notices. Many people may have lost their cars without knowing they still had time to act.
To avoid going through a long court process, Bank of America decided to settle. Even though they didn’t admit they did anything wrong, the bank is offering money and credit help to affected borrowers. This agreement could help many people who faced credit damage or lost their vehicles unfairly.
What the Lawsuit Was About
The case, called Nelson, et al. v. Bank of America NA (Case No. 5:23-cv-00255-JS), says the bank broke Pennsylvania laws about vehicle repossessions. These rules require lenders to tell borrowers the earliest date their vehicle could be sold. This gives borrowers a fair chance to either pay off the debt or make other plans.
The lawsuit claimed Bank of America sent notices that didn’t include this sale date. Because of this, many people didn’t know how much time they had left to get their car back. This led to lost vehicles, money problems, and credit score damage. While the bank hasn’t admitted fault, it agreed to settle and offer help.
Who Can Get a Part of the Settlement?
Only a certain group of people are included in this settlement:
- You must live in Pennsylvania.
- Your vehicle must have been repossessed by Bank of America between December 23, 2016, and February 16, 2024.
- You must have received a notice that did not include the correct sale date.
What Kind of Help Will You Receive?
1. Cash from the $3.25M Fund
If you’re eligible, you will get a payment from the $3.25 million fund. The exact amount each person receives depends on how many people are included. If more people qualify, the payments will be smaller.
To see how much you might get, visit NelsonClassAction.com and use the “Estimated Award Eligibility” section. This gives a rough idea of what your payment could be.
2. Fixes to Your Credit Report
One of the biggest benefits is that Bank of America will ask credit agencies to remove any negative notes related to the repossessed loans. This means:
- Your credit score may go up.
- You may have a better chance at getting loans or credit cards.
- It could help fix the financial harm caused by the repossession.
How to Check If You’re Eligible and See Payment Info
To find out if you are part of the settlement, follow these easy steps:
- Go to NelsonClassAction.com.
- Click “Check Eligibility.”
- Enter your name, address, and loan information.
- Go to the “Estimated Award” section to see your possible payment.
Also, keep checking your credit report through annualcreditreport.com or any credit monitoring service to confirm if the bank’s credit fix has been applied.
Don’t Miss These Important Dates
Here are some key deadlines:
- December 18, 2024: Last day to object or remove yourself from the settlement.
- February 18, 2025: The final court hearing where the settlement will be reviewed.
- Payment Date: Payments will be sent out after the court approves the settlement. The exact date is not set yet.
If you want to stay in the case and get the money and credit fixes, you don’t need to do anything. You only need to act if you want to leave the case or object to it.
No Paperwork Needed for Benefits
A great thing about this settlement is that you don’t need to file a claim. Everyone who qualifies will be automatically included and will receive the benefits once the court approves everything.
You only need to take action if:
- You want to opt out of the settlement to take legal action alone.
- You disagree with the settlement and want to file an objection.
Need Help or Have Questions?
If you have questions or need help, you can contact the official claims team:
Nelson v. Bank of America Class Settlement
c/o Settlement Administrator
PO BOX 23698
Jacksonville, FL 32241-3698
Email: info@NelsonClassAction.com
Website: NelsonClassAction.com