Did you finance a car with Bank of America in Pennsylvania and then face repossession between 2016 and 2024? If so, you might be getting some unexpected compensation. Here’s everything you need to know about the recent $3.25 million class action settlement, how it affects you, and what comes next—even if you didn’t file a claim.
Lawsuit
This whole case kicked off because Bank of America allegedly dropped the ball on sending out proper repossession notices. These notices, by law, must include the exact date after which the repossessed vehicle would be sold.
The issue? Many borrowers in Pennsylvania got notices that left out that critical piece of info. That kind of omission is more than just a clerical error—it can impact someone’s ability to reclaim their car or make financial arrangements.
Although the bank didn’t admit any fault, it decided to settle to avoid the headaches of ongoing litigation. The result? A $3.25 million pot that will be split among qualifying borrowers.
Eligibility
Wondering if you qualify? Here’s the checklist you need to meet:
- You financed your vehicle through Bank of America.
- Your car was repossessed between December 23, 2016, and April 16, 2024.
- You got a repossession notice that didn’t include the sale date.
- You were living in Pennsylvania at the time.
If you check all those boxes, you’re in. And guess what? You don’t even need to file a claim. Eligible borrowers will be included automatically unless they chose to opt out.
Compensation
Now for the good part—how much are we talking?
The $3.25 million fund will be distributed among eligible borrowers, but keep in mind that attorney fees and administrative costs will be deducted first. That means the final amount each person receives depends on how many people qualify.
Here’s a quick snapshot of how it breaks down:
| Detail | Amount or Info |
|---|---|
| Total Settlement Fund | $3.25 million |
| Claim Filing Needed? | No (automatic inclusion if eligible) |
| Final Hearing Date | April 28, 2025 |
| Credit Report Adjustment? | Yes, included in settlement benefits |
| Website | NelsonClassAction.com |
You can find your estimated payment range by checking the Estimated Award Eligibility section on the settlement website.
Credit
This settlement isn’t just about money—it’s also about fixing your credit. Bank of America has agreed to work with all three major credit bureaus (Equifax, Experian, and TransUnion) to remove the negative marks related to these repossessions.
This could mean:
- Higher Credit Scores: Those repossession records really hurt your credit. Removing them could boost your score.
- Better Loan Terms: A cleaner credit report might help you qualify for better rates on credit cards, car loans, or even mortgages.
- Easier Financial Recovery: Less stress and more opportunities to rebuild your finances.
The best part? You don’t have to lift a finger. The updates will happen automatically once the court gives the final go-ahead.
Process
At this stage, the claim submission deadline has already passed, so you can’t apply anymore. But if you’re eligible and didn’t opt out, you’re still getting your share.
Once the court finalizes the settlement on April 28, 2025, the payment and credit report corrections will begin. Just keep an eye on your mailbox and credit score.
If you need help or more info, you can contact the Claims Administrator:
Nelson v. Bank of America Class Settlement
c/o Settlement Administrator
PO BOX 23698
Jacksonville, FL 32241-3698
Email: [email protected]
This class action is a reminder of the importance of details—especially when they affect your rights. Even a missing date on a notice can make a big difference. So if this lawsuit applies to you, it might just put a little cash in your pocket and clean up your credit too. Not bad for a legal misstep.
FAQs
Who qualifies for the BofA settlement?
Borrowers in PA whose cars were repossessed between 2016 and 2024.
Do I need to file a claim?
No. Eligible borrowers are automatically included.
When will payments be made?
After the final court hearing on April 28, 2025.
Will my credit be fixed too?
Yes, repossession records will be removed automatically.
Where can I check eligibility?
Visit NelsonClassAction.com for full eligibility details.
