Five Star Bank $29.5M Vehicle Repossession Settlement
If Five Star Bank or Financial Institutions Inc. repossessed and sold your vehicle between May 16, 2011 and Sept. 30, 2021, you are likely entitled to an automatic cash payment—and possibly full forgiveness of any remaining loan balance—from a newly approved $29.5 million class action settlement. Check your mail for a payment or update your address online to ensure you receive every available benefit.
Who Is Eligible?
- You (or a co-borrower) had an auto loan with Five Star Bank or Financial Institutions Inc.
- Your vehicle was repossessed between May 16, 2011 and Sept. 30, 2021.
- The bank sent you a post-repossession notice about the vehicle’s repossession and/or sale.
Settlement Benefits
- Cash payment from the net settlement fund (exact amount depends on the total number of class members).
- Cancellation of any outstanding “deficiency balance” still owed after the vehicle’s sale.
- Removal of related negative tradelines from your credit reports.
- If the bank obtained a deficiency judgment, it will be marked “satisfied.”
How Do I Get Paid?
No claim form is required. The settlement administrator will automatically mail checks to the last known address in the bank’s records. Use the address update link below if you have moved.
Update Your AddressKey Dates
- Opt-Out Deadline: October 13, 2025
- Final Fairness Hearing: November 4, 2025
- Expected Distribution: After final approval and conclusion of any appeals
Settlement Fund Allocation
The $29.5 million fund will be used to pay:
- Administrative costs (amount to be determined)
- Attorneys’ fees (up to $11.8 million) and expenses (up to $150,000)
- Service awards of $40,000 to each of the four class representatives
- Cash payments to class members (all remaining funds)
If more than $100,000 remains after the first round of checks, a second distribution will occur. Any funds left after that will be split between designated legal aid organizations in Pennsylvania and New York.
Why Was There a Lawsuit?
Plaintiffs alleged that the bank’s post-repossession notices did not meet requirements under Pennsylvania and New York law, potentially harming borrowers’ rights. Five Star Bank and Financial Institutions Inc. deny all wrongdoing but agreed to settle to avoid further litigation risk and expense.
Need Help?
Contact the settlement administrator:
Settlement Administrator – Chipego v. Five Star Bank
P.O. Box 23698
Jacksonville, FL 32241
Phone: 800-564-0758
Helpful Links
Frequently Asked Questions
Do I need to submit a claim for the Five Star Bank vehicle repossession settlement?
No. Payments are automatic. Only address updates require action.
How much money will each class member receive from the Five Star Bank $29.5M settlement?
The amount is pro rata. After fees and costs are deducted, the remaining money is split equally among all eligible borrowers.
Will the settlement remove the repossession from my credit report?
Yes. The bank will ask major credit bureaus to delete tradelines related to the covered auto loans.
Can I opt out of the Five Star Bank settlement?
Yes. To keep your right to sue separately, you must mail an exclusion request postmarked by October 13, 2025.
When will settlement checks be mailed?
Checks will be distributed after the court grants final approval on November 4, 2025 (or later if appeals are filed) and all appeals, if any, are resolved.