Financial Institutions in Warsaw, N.Y. has settled civil litigation tied to its bank’s auto loan notification process.
The $6.1 billion-asset company said in a press release that it agreed to make a $29.5 million cash payment to class members, release the debt owed to the bank, and remove adverse credit reporting for class members. The settlement is subject to court approval.
As a result, the company recorded a $23 million litigation accrual in the fourth quarter, increasing its loss in the quarter from $26 million to $43.1 million.
The lawsuit, originally filed in 2017, took issue with language in repossession notices issued to defaulting borrowers between 2011 and 2021.