State Farm Bank, Afni $110M Repossession Settlement

Individuals who had EMVLP LLC, EMVLP II LLC, Twenty-One Eighty-Five LLC, State Farm Bank FSB or Afni Inc. repossess their property after it sent both a presale and post-sale notice may be eligible to receive a cash payment, debt relief and credit reporting benefits from a class action settlement.

State Farm Bank FSB, Afni Inc., EMVLP LLC, EMVLP II LLC and Twenty-One Eighty-Five LLC agreed to pay $110 million (a $35,000,000 cash fund and $75,000,000 in deficiency write-offs) to resolve a class action lawsuit alleging they attempted to collect on loans by repossessing and selling property without providing the required statutory notices.

Who are the class members?

Class members are individuals who meet all of the following criteria:

• They secured a collateralized loan or financing agreement with EMVLP LLC, EMVLP II LLC, Twenty-One Eighty-Five LLC, State Farm Bank FSB or Afni Inc.
• One of these companies repossessed their collateral (such as a vehicle or other property).
• One of the companies mailed them both a presale notice and a post-sale explanation regarding the repossession and sale of their property.

The class includes borrowers who secured loans directly with these companies or whose loans were assigned to them.

Who is excluded from the class?

• Anyone who received both a presale notice and post-sale explanation before July 25, 2017
• Anyone against whom State Farm obtained a final deficiency judgment
• Anyone who filed for bankruptcy after the date on their presale notice and whose bankruptcy ended in discharge rather than dismissal

How much can class members get?

Class members are eligible for several types of relief under this settlement:

• Cash payment: Each eligible class member will receive a pro rata share of the $35 million cash fund based on their loan and finance charge. Each member's share = (10% of the amount financed on their Truth in Lending Act statement + their finance charge) divided by (10% of the total amount financed for all class members + the total finance charge for all class members) multiplied by the net distributable settlement fund.
• Deficiency write-off: Complete write-off of any outstanding deficiency balances the companies claim the class member owes after repossession and sale of property (estimated at $75 million total)
• Credit reporting relief: The defendants will request deletion of negative credit reporting information to major credit bureaus (Equifax, Experian, TransUnion and Innovis) related to the repossessed accounts.

No action needed to receive payment

Class members do not need to file a claim to receive their benefits. They will automatically receive the settlement benefits, including a check mailed to their last known address and the write-off of any outstanding deficiency balance. The settlement administrator will use the best available address and attempt to update addresses using postal databases. it will re-mail returned checks if it can find a new address. Checks are void after 120 days if class members do not cash them.

Class members who wish to exclude themselves from the settlement (opt out) must mail a signed letter with their name, address, phone number, last four digits of their Social Security number and any co-borrower's name and signature to the settlement administrator by April 23, 2026. Those who do nothing will receive the benefits and give up the right to sue separately about these claims.

Settlement administrator's mailing address: AFNI v Martinez, c/o Class Administrator, P.O. Box 23309, Jacksonville, FL 32241

$110 million settlement fund breakdown

The $110,000,000 settlement fund includes:

• Cash fund: $35,000,000
• Settlement administration costs: To be determined
• Attorneys' fees: Up to $38,500,000
• Attorneys' expenses: Up to $130,000
• Service award to class representative: Up to $25,000
• Payments to class members: Remainder of the fund

• Deficiency write-offs: Estimated at $75,000,000

Important dates

• Exclusion (opt-out) deadline: April 23, 2026
• Final fairness hearing: May 6, 2026

When is the Afni Inc. v. Thuy Martinez payout date?

The settlement administrator will distribute class member payments within 30 days after the court resolves any appeals and grants final approval of the settlement.

Why is there a class action settlement?

The class action lawsuit alleged the defendants violated statutory requirements by sending improper repossession notices when attempting to collect on loans and repossess and sell property.

To avoid the uncertainty and expense of litigation, both sides agreed to settle.

Sources

1. Class notice
2. Settlement agreement
3. Settlement FAQ
4. Key dates