A billion-dollar bank has agreed to pay $29.5 million to settle accusations that vehicles were repossessed without proper notice.
According to the newly updated settlement portal, Five Star Bank will provide compensation to those who had car loans and their vehicle repossessed between May 16th, 2011, through September 30th, 2021.
[adinserter block="1"]The class action lawsuit alleges that the bank violated Pennsylvania and New York laws by failing to properly notify borrowers after their vehicle was repossessed.
The bank, which denies claims and argues it satisfied the legal requirements, is not admitting any wrongdoing as part of the agreement.
Says the settlement,
“The Bank has agreed to create a Settlement Fund of $29,500,000.00. Court-approved Class Counsel fees and expenses, service awards for the Class Representatives, and expenses of settlement administration will be paid from that fund. Then, the Net Fund that remains will be distributed to the members of the Class.”
The settlement would also eliminate for claimants any shortfall the bank says is owed after the car was repossessed. No action is required by those impacted to benefit from the settlement.
A court will hold a hearing on November 4th on whether to approve the settlement agreement.
Five Star is the 204th largest US bank with $6.1 billion of assets under management, according to Federal Reserve data.
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