$29.5M Five Star Bank Settlement Ends Class Action Lawsuit Over Allegedly Illegal Vehicle Repossessions

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A $29.5 million class action settlement will end litigation that alleged Five Star Bank repossessed and resold vehicles for which consumers had taken out a loan without giving the individuals proper notice of their rights as required by Pennsylvania and New York law.

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The Five Star Bank class action settlement received preliminary court approval on July 29, 2025 and covers the approximately 6,358 people who, between May 16, 2011 and September 30, 2021, had their vehicle repossessed by Five Star Bank and were thereafter sent one or more specific forms of notice.

The court-approved website for the Five Star Bank settlement can be found at FiveStarBankRepoClassAction.com.

Through the deal, Five Star Bank settlement class members will be able to receive a cash payment, credit reporting relief and the elimination of remaining deficiencies on the loans for their eligible vehicle or vehicles.

The cash payment, according to the settlement website, will be an equal share of the remainder of the $29.5 million settlement fund after the payment of settlement administration fees, lawyers’ fees and lead plaintiff awards, and will be in the form of a check mailed to all settlement members.

The website stipulates that if more than $100,000 remains after all settlement payments are distributed, which may be likely due to undistributable or uncashed checks, a second cash distribution will be made to class members.

The credit reporting relief aspect of the settlement will remove any reference to the relevant auto loan or loans with Five Star Bank from class members’ credit reports, court documents state.

Any deficiency that Five Star Bank had initially claimed on a class member’s vehicle after its resale will be eliminated, and class members will not be charged for any remaining balance on the deficiency, according to the site.

No action is required on the part of settlement class members to claim Five Star Bank class action settlement benefits.

Should a class member need to update their mailing address in order to receive the check for their cash payment, they can visit this page and log in with the unique notice ID and PIN found in their copy of the settlement notice.

The settlement website also mentions that the administrator will issue to class members IRS 1099-series forms for payments over $600.

A hearing is set for November 4, 2025 to determine whether the settlement will receive final approval from the court. Payments and compensation will begin to be distributed to class members only after final approval has been granted and any appeals have been resolved.

The Five Star Bank class action lawsuit claimed that the bank did not give consumers proper notice of their rights after the repossession and sale of vehicles for which they had taken out loans.

Are you owed unclaimed settlement money? Check out our class action rebates page full of open class action settlements.