State Farm Bank Over 110 Million Settlement for Improper Repossession Notices and Debt Relief

This class action stems from allegations that State Farm Bank and related entities (EMVLP LLC, EMVLP II LLC, Twenty-One Eighty-Five LLC, State Farm Bank F.S.B., and Afni Inc.) failed to provide legally required presale and post-sale notices to borrowers whose secured property was repossessed and sold. The defendants deny the claims, but to avoid trial they agreed to a settlement valued at over $110 million: a $35 million cash fund (automatic checks, no claim form), at least $75 million in deficiency-balance write-offs (balances reduced to $0), and requests to remove related negative items from the four major credit bureaus. You qualify if you had a covered secured loan with these defendants and received both notices on or after July 25, 2017; the opt-out deadline is April 23, 2026 and the fairness hearing is May 6, 2026. Attorneys’ fees may be up to 35% of the settlement and a $25,000 service award was approved for the class representative. Beyond the immediate relief for class members, the case highlights recurring legal and regulatory friction in the lending and loss‑mitigation industry: state and contract-based repossession notice rules determine when presale and post-sale explanations must be sent, the Fair Credit Reporting Act governs accuracy and deletion requests to consumer reporting agencies, and tax rules can complicate whether forgiven debt is reported (the parties agreed no 1099‑C will be issued, citing “contested liability”). Similar suits against auto and consumer lenders have increasingly produced settlements that combine cash payouts, debt extinguishment, and credit-file remediation, signaling increased scrutiny on servicers’ communications and collection practices and prompting affected consumers to monitor credit reports and consider tax advice.