Bank of America, NA finances auto purchases, in Pennsylvania and elsewhere; and if the buyers default on the auto loans, it is entitled to repossess and sell the vehicles. But when it does so, the complaint for this class action alleges, the bank does not send proper notices to the buyer, as required by Pennsylvania’s Uniform Commercial Code (UCC).
The class for this action is all persons
- Who financed the purchase of a motor vehicle for consumer use through Bank of America, or who financed the purchase through another entity but the agreement was later assigned to Bank of America,
- From whom Bank of America, as the secured party, repossessed the vehicle or ordered it repossessed,
- Who had a Pennsylvania address on the date of repossession,
- Between November 4, 2016 and the date the class is certified in this case.
The two plaintiffs in this case had their vehicles repossessed by Bank of America, the complaint alleges, without the bank providing the notice required by the UCC.
One of the two, Gary Nelson, bought a 2013 Ford Explorer in February 2016 with a Retail Installment Sale Contract (RISC) financed by Bank of America. In or around May 2021, the complaint alleges, the bank declared the loan to be in default and repossessed it.
The bank is permitted to repossess vehicles on its own, but when doing so, it must follow certain rules, the complaint alleges: “Because self-help repossession if effected without judicial authorization or oversight, the UCC requires secured creditors like the Bank to adhere strictly to the Code’s notice requirements.”
According to the complaint, “Pennsylvania law requires that secured parties like the Bank provide the borrower the right to redeem the vehicle for fifteen days from the date of mailing of the Notice. The Notice must inform the borrower of this right.” The complaint quotes the law as saying that the Notice of Repossession must contain “Notice to the buyer of the holder’s intention to resell the motor vehicle at the expiration of 15 days from the date of mailing the notice.”
Nelson’s Notice was mailed on May 14, 2021, so the complaint alleges that the last day he could redeem the vehicle should have been May 29, but the complaint quotes the Notice as saying, “We will sell the 2013, Ford, Explorer at private sale sometime after May 27, 2021.” This date is only 13 days from the date of the Notice.
“The Bank, as secured party,” the complaint alleges, “sent template forms of Notice to consumers across Pennsylvania providing an inadequate and commercially unreasonable period of time to act to redeem their motor vehicle, i.e., less than 15 days to act.”
Article Type: LawsuitTopic: Loans
Most Recent Case Event
Bank of America Vehicle Repossession Notices Pennsylvania Complaint
November 4, 2022
Bank of America, NA finances auto purchases, in Pennsylvania and elsewhere; and if the buyers default on the auto loans, it is entitled to repossess and sell the vehicles. But when it does so, the complaint for this class action alleges, the bank does not send proper notices to the buyer, as required by Pennsylvania’s Uniform Commercial Code (UCC).
Bank of America Vehicle Repossession Notices Pennsylvania ComplaintCase Event History
Bank of America Vehicle Repossession Notices Pennsylvania Complaint
November 4, 2022
Bank of America, NA finances auto purchases, in Pennsylvania and elsewhere; and if the buyers default on the auto loans, it is entitled to repossess and sell the vehicles. But when it does so, the complaint for this class action alleges, the bank does not send proper notices to the buyer, as required by Pennsylvania’s Uniform Commercial Code (UCC).
Bank of America Vehicle Repossession Notices Pennsylvania Complaint