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Consumers with a Pennsylvania address who financed a motor vehicle through, or had their consumer loan or installment sales contract assigned to, Peoples Security Bank & Trust or Peoples Financial Services and had their vehicle repossessed between Sept. 15, 2008, and Nov. 7, 2017, may be eligible to receive approximately $1,300 from a class action settlement.
Peoples Security Bank & Trust Co. and Peoples Financial Services Corp. agreed to pay $1,152,673 to settle a class action lawsuit alleging violations of Pennsylvania’s Uniform Commercial Code, the Motor Vehicle Sales Finance Act and the Fair Credit Extension Uniformity Act related to vehicle repossessions and debt collection practices.
Who are the class members?
Class members are borrowers and co-borrowers who meet the following criteria:
- They financed a motor vehicle primarily for personal, family or household use through Peoples Security Bank & Trust, or they had a consumer loan or installment sales contract assigned to Peoples Security Bank & Trust or Peoples Financial Services.
- Peoples Security Bank & Trust repossessed their vehicle or directed a third party to repossess their vehicle between Sept. 15, 2008, and Nov. 7, 2017.
- They received a notice of repossession by the defendants or their agent that did not state the intended method of disposition, the time and place of any public disposition or that the recipient is entitled to an accounting of the unpaid indebtedness and the charge, if any, for such an accounting, or they did not receive a repossession notice.
- They had a Pennsylvania address as of the date of repossession.
How much are settlement payments?
Pro rata cash payment: Eligible class members will receive a pro rata cash payment from the net settlement fund estimated at $1,300 per qualifying account. If an account has multiple borrowers, the settlement administrator will split the payment equally between each borrower.
No claim form required
Class members do not need to submit a claim form to receive a settlement payment.
- Co-borrowers who wish to request a different division of the payment must submit a signed request in writing to the settlement administrator.
- If the borrower is deceased, the legal representative, executor or administrator of the deceased's estate must submit a request in writing to the settlement administrator and provide documentation to redirect the payment.
Settlement administrator's mailing address: Class-Settlement.com, PO Box 9009, Hicksville, NY 11802-9009
The deadline for written requests is Sept. 21, 2026.
Payout options
- Paper check mailed to the address on file
Settlement fund breakdown
The $1,152,673 settlement fund will include:
- Settlement administration costs: To be determined
- Attorneys' fees: Up to $576,336
- Attorneys' expenses: Up to $75,000
- Service awards to class representative: Up to $15,000
- Payments to eligible class members: Remaining settlement funds
Important dates
- Deadline to request exclusion: Sept. 21, 2026
- Deadline to submit written request for payment division: Sept. 21, 2026
- Fairness hearing: Oct. 14, 2026
When is the Peoples Security Bank & Trust repossession settlement payout date?
The settlement administrator will issue payments to eligible class members after the court grants final approval of the settlement.
Why did this class action settlement happen?
The class action lawsuit alleged Peoples Security Bank & Trust Co. and Peoples Financial Services Corp. failed to provide proper notices and disclosures required by Pennsylvania law when repossessing vehicles and collecting debts. The plaintiff claimed violations of the Uniform Commercial Code, the Motor Vehicle Sales Finance Act and the Fair Credit Extension Uniformity Act.
Peoples Security Bank & Trust and Peoples Financial Services denied the allegations but agreed to settle to avoid the expense and risk of continued litigation.
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