$3.25M Bank of America Settlement – Check If You’re Getting a Payout

Bank of America is on the hook for a $3.25 million settlement, and if your car was repossessed in Pennsylvania between December 2016 and May 2024, you might be part of it—without doing much of anything. That’s right, this settlement is automatic for eligible borrowers.

The case centers on faulty post-repossession notices that violated Pennsylvania’s legal standards, and now affected consumers are in line for both cash and credit relief. Let’s break it all down.

Overview

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Bank of America got called out for sending defective repossession notices to Pennsylvania borrowers. The issue? These notices didn’t include a required sale date for the repossessed vehicle—something the law says you must be told. Without this info, borrowers couldn’t act in time to recover their cars or avoid further financial damage.

Now, as part of a class action settlement, BofA will shell out millions to fix it—by compensating borrowers and cleaning up their credit reports.

Eligibility

So, are you part of this payout? Here’s a quick checklist:

• You financed a car with Bank of America (or had a loan assigned to them)
• You lived in Pennsylvania at the time your vehicle was repossessed
• The repossession happened between December 23, 2016, and May 16, 2024
• You got a notice that didn’t mention when the car would be sold

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If all of that applies, then congrats—you’re in the class action. You don’t have to file a claim. Payments and credit relief will be automatic.

Benefits

What exactly are you getting from this settlement? Let’s talk dollars and credit scores.

Cash Payments

The total payout is $3.25 million. That sounds huge, but it gets split:

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Depending on how many people qualify, you could receive $50 to a few hundred dollars. It’s not life-changing money, but it’s still cash for a mistake you didn’t make.

Credit Repair

This part might be the real MVP.

Bank of America will ask credit bureaus to delete any negative tradelines related to these faulty repossessions. If your score tanked because of this, you might see it bounce back—potentially making it easier to:

• Qualify for loans
• Score lower interest rates
• Boost your credit card limits

Keep an eye on your report using AnnualCreditReport.com, and verify the changes when they hit.

Action

Here’s the beauty of it—you don’t need to file a claim. But you should still take a few easy steps:

1. Check Your Records: Was your car repossessed by Bank of America during the eligible period?
2. Update Your Info: Moved recently? Head to NelsonClassAction.com to update your address.
3. Watch for Notices: Letters or emails about the settlement should arrive—don’t ignore them.
4. Track Your Credit: Once the credit relief kicks in, confirm the bad marks are gone.

Dates

Mark those down. Even though you don’t need to do anything to be included, you can opt out or object if you want.

Impact

This lawsuit goes beyond just one bank messing up a notice. It’s a reminder that you have rights, especially when it comes to how lenders handle your loans. If they break the rules, class actions like this one give you and others a way to fight back—and even get compensated.

For banks, this is a wake-up call. Following local consumer laws isn’t optional. For borrowers, it’s a sign that even small legal oversights can cause real harm—and you don’t need to be silent about it.

Even if your payout is small, the credit cleanup could save you hundreds (or more) down the line. So take a few minutes to check if you’re eligible. It’s your money and your credit—get what you’re owed.

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