Bank of America has agreed to a $3.25 million settlement to resolve claims that it failed to give proper legal notices before selling repossessed vehicles in Pennsylvania.
If you had a car loan with the bank and your vehicle was repossessed between late 2016 and early 2024, this settlement could impact you—even if you didn’t file a claim.
Although Bank of America denies any wrongdoing, it chose to settle the class action to avoid lengthy court battles and compensate affected borrowers.
Let’s break down what the case was about, who qualifies, how much money’s involved, and what kind of relief is coming your way.
Lawsuit
This legal dispute stems from allegations that Bank of America violated Pennsylvania’s vehicle finance laws. Borrowers claimed the bank sent repossession notices that didn’t include the exact date after which their vehicles would be sold.
That detail might seem small, but under the law, it’s crucial—borrowers need that date to act, whether they want to reclaim the vehicle, pay the balance, or look into options.
Because of the missing info, borrowers were left in the dark. Many felt blindsided when their vehicles were sold without clear warning. That’s what sparked the lawsuit, Nelson et al. v. Bank of America NA, filed in the U.S. District Court for the Eastern District of Pennsylvania.
Eligibility
Wondering if you’re part of this settlement? You may be eligible if:
- You financed a vehicle through Bank of America.
- Your vehicle was repossessed between December 23, 2016, and February 16, 2024.
- You received a repossession notice that didn’t state the exact sale date.
- You were a Pennsylvania resident at the time.
If you meet all four conditions, you’re automatically included in the class—no need to file anything. Just sit tight and wait for your benefits unless you already opted out (which means you won’t get anything, but you can sue the bank separately if you want).
Compensation
Let’s talk about the money. The $3.25 million fund will be divided among all eligible borrowers after legal fees and admin costs are deducted. Each borrower will get:
- Cash payment (amount depends on total number of eligible people).
- Credit report adjustment, which could help fix damaged scores caused by the repossession.
Here’s a summary:
| Compensation Type | Details |
|---|---|
| Cash Payout | Proportional share of $3.25 million fund |
| Credit Report Correction | Negative entries removed automatically |
| Claim Form Needed? | No – benefits are automatic |
Borrowers can check NelsonClassAction.com for estimated payouts. But remember, the more people qualify, the smaller each check will be.
Credit
Here’s where it gets even better: the settlement doesn’t just hand you cash—it also helps clean up your credit.
Bank of America will work with the three major credit bureaus—Equifax, Experian, and TransUnion—to:
- Remove repossession-related negatives
- Improve your credit profile
- Help you qualify for future loans or cards
This change happens automatically. You don’t need to request it or do anything special. Once the court finalizes the settlement, the bank will begin the updates.
Benefits of this update include:
- Higher credit score
- Better chances at approval for loans or mortgages
- Easier financial recovery
Process
If you’re included in the class, there’s nothing left for you to do. The claim deadline has passed, but payments and credit adjustments will be handled automatically for qualified borrowers.
Key details to keep in mind:
- Final Approval Hearing: May 28, 2025
- Settlement Website: NelsonClassAction.com
- Email for Support: [email protected]
- Claims Administrator:
Nelson v. Bank of America Class Settlement
c/o Settlement Administrator
PO BOX 23698, Jacksonville, FL 32241-3698
After final court approval, the distribution process will begin, and checks or direct deposits will be sent out.
Bank of America’s settlement might not erase the inconvenience, but it’s a start. Whether it’s a cash payout or a boost to your credit score, some relief is finally on the way for Pennsylvania borrowers.
FAQs
Who qualifies for the Bank of America settlement?
PA residents with repossessed vehicles from 2016–2024.
How much is the settlement worth?
The total fund is $3.25 million.
Do I need to file a claim to get paid?
No, eligible borrowers are included automatically.
Will my credit report be fixed?
Yes, negative marks will be removed automatically.
When will the final hearing take place?
On May 28, 2025.
