Tri County Area Federal Credit Union Repossession Settlement: $570K

Individuals who:

• Purchased a vehicle for personal use
• Financed the purchase through Tri County Area Federal Credit Union
• Had their vehicle loan or installment sale contract assigned to the credit union
• Experienced repossession by the credit union
• Lived in Pennsylvania at the time of repossession
• Received a post-repossession notice from the credit union between Aug. 22, 2016, and Oct. 17, 2022

No proof of purchase is required. Settlement benefits will be automatically distributed to eligible class members unless they exclude themselves.

Tri County Area Federal Credit Union agreed to a $570,000 settlement to resolve allegations it failed to send proper notices after repossessing vehicles. Plaintiffs in the lawsuit claim these notices lacked specific disclosures required under Pennsylvania law.

While the credit union denies any wrongdoing, it has agreed to the settlement to avoid the costs and uncertainty of continued litigation.

Key terms of the settlement include:

1. Monetary Compensation: Class members will receive a pro rata share of the settlement fund after administrative costs, legal fees, and the plaintiff’s service award are deducted.
2. Credit Report Updates: The credit union will request credit agencies to remove references to affected loans from borrowers’ credit reports.
3. Debt Forgiveness: Disputed deficiency balances tied to the repossessions will be eliminated.

Eligible class members will receive compensation from the $570,000 settlement fund. Payment amounts will depend on the number of valid claims and deductions for fees. Current estimates suggest payments will vary but are expected to be fair and proportional.

No claim form is required for this settlement. Eligible class members will automatically receive benefits unless they exclude themselves by the deadline.

By settling this case, Tri County Area Federal Credit Union also commits to enhancing its practices, ensuring better compliance with Pennsylvania’s legal requirements for future repossessions.