Consumers can benefit from recent settlements involving banks, financial institutions

Banking settlements overview: 

• Who: Bankers Tri County Area Federal Credit Union, Popular Bank, Wells Fargo and Citibank recently agreed to class action settlements. 
• Why: The banking settlements resolve claims involving vehicle repossession notices, overdraft fees, COVID forbearance and robocalls. 
• Where: The class action settlements benefit certain consumers nationwide.

Bankers Tri County Area Federal Credit Union, Popular Bank, Wells Fargo and Citibank recently agreed to class action settlements to end claims involving vehicle repo notices, overdraft fees, COVID forbearance and robocalls. 

A bank may agree to a class action settlement as a way to appease customers and avoid further litigation without admitting fault.

Credit union to pay $570K to end improper vehicle repo notice claims

Tri County Area Federal Credit Union agreed to pay $570,000 to resolve claims the credit union failed to send proper notices to borrowers after repossessing their vehicles. 

The settlement will benefit a class of consumers who financed a vehicle purchase through Tri County or had their vehicle loan or installment contract assigned to the credit union and who had their vehicle repossessed by Tri County while living in Pennsylvania and prior to receiving a post-repossession vehicle notice between Aug. 22, 2016, and Oct. 17, 2022.

In addition to the settlement funds, Tri County also agreed to both eliminate disputed deficiency balances and request credit agencies to update affected borrowers’ credit reports and remove any reference to an auto loan account with them. 

Consumers do not have to file a claim form to be eligible to benefit from the Tri County class action settlement. 

Popular Bank agrees to pay $1.5M to end overdraft charge claims

Popular Bank agreed to pay $1.5 million to end claims it breached its account agreement with its customers by charging overdraft fees on certain debit card and ATM transactions. 

The settlement benefits a class of Popular Bank checking account holders who were assessed an overdraft fee between May 13, 2016, and July 26, 2024, and never refunded for the charge. 

The settlement also benefits Popular Bank account holders who were charged an overdraft fee for transactions authorized against positive funds on or after April 16, 2020, and all account holders charged an overdraft fee for a transaction authorized on or before April 15, 2020.

Consumers do not have to file a claim form to be eligible to benefit from the Popular Bank class action settlement. 

Wells Fargo to pay $185M over COVID forbearance claims 

Wells Fargo agreed to pay $185 million to resolve claims the bank placed mortgage loans into COVID forbearance without informed consent. 

The settlement benefits a class of consumers who had a mortgage serviced by Wells Fargo placed into COVID mortgage forbearance without their informed consent between March 1, 2020, and Dec. 31, 2021. 

Class members will receive a pro rate share of the first $69 million of the settlement funds, with co-borrowers potentially receiving an additional payment of $83.33. Individuals who believe they experienced additional harm can also file a claim for more compensation. 

Consumers did not have to file a claim form to be eligible to benefit from the Wells Fargo class action settlement. 

Citibank agrees to pay $29.5M over TCPA robocall claims

Citibank agreed to pay $29.5 million to put to bed claims the bank repeatedly robocalled noncustomers in an alleged violation of the Telephone Consumer Protection Act.

The settlement benefits a class of consumers who are not current or former Citibank account holders and who received at least one prerecorded call or robocall concerning a past-due credit account between Aug. 15, 2014, and July 31, 2024. 

Class members will receive an equal share of the settlement funds, with estimated individuals payouts between $350 and $850. Recovery is limited to $2,500 per claimant unless they are able to provide evidence they received more than five calls. 

Consumers who want to make a claim to join the Citibank class action settlement must submit a valid claim form by Dec. 20, 2024. 

Are you eligible to benefit from any of the recent banking settlements? Let us know in the comments.

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