Five Star Bank agreed to a $29.5 million class action settlement to resolve claims it failed to send legally required post-repossession notices to borrowers in Pennsylvania and New York between May 16, 2011, and September 30, 2021. No claim form is required — eligible class members receive automatic payments.
Status Update (March 31, 2026): The Final Approval Hearing was held on November 4, 2025. If final approval was granted as expected, payments should be in distribution now or arriving in early 2026. If you have not yet received your payment, check the settlement website or contact the administrator.
Five Star Bank $29.5M Settlement — Overview
| Settlement Fund | $29,500,000 |
| Defendant | Five Star Bank and Financial Institutions Inc. |
| Case Name | Matthew Chipego et al. v. Five Star Bank et al., Case No. 02466 (Philadelphia County, PA) |
| Eligible Period | May 16, 2011 – September 30, 2021 |
| Claim Form Required? | No — automatic payment for eligible class members |
| Final Approval Hearing | November 4, 2025 (completed) |
| Expected Payout | Early to mid-2026 (distribution underway) |
| Settlement Administrator | Chipego v. Five Star Bank, P.O. Box 23698, Jacksonville, FL 32241 |
| Administrator Phone | 800-564-0758 |
Who Qualifies?
You are an eligible class member if:
- You had an auto loan financed by Five Star Bank (directly or through a car dealership)
- Your vehicle was repossessed by Five Star Bank between May 16, 2011, and September 30, 2021
- You received a post-repossession or post-sale notice from Five Star Bank or Financial Institutions Inc. during that period
- You received a notice from the Settlement Administrator with your Notice ID and PIN
How Much Will You Receive?
Your payment depends on how much you paid on your repossessed loan and the circumstances of your repossession. General estimates are:
- $50–$200: If you paid little or nothing on the loan before repossession
- $300–$700: If you paid off a portion of the loan before repossession
- $800–$1,500: If you made many payments before repossession
- $1,500–$3,000: If you made payments after repossession or paid a deficiency balance
In addition to cash payments, the settlement provides:
- Deficiency balance forgiveness: Any remaining deficiency balance owed to Five Star Bank will be waived
- Credit reporting relief: Five Star Bank will request credit agencies remove references to the repossessed auto loan from your credit report
Haven’t Received Your Payment Yet?
If you are an eligible class member and have not yet received your payment, take these steps:
- Ensure your current mailing address is on file with the Settlement Administrator
- Contact the Settlement Administrator at 800-564-0758
- Write to: Chipego v. Five Star Bank, P.O. Box 23698, Jacksonville, FL 32241
- Contact Class Counsel: Flitter Milz, P.C. or McShea Law Firm, P.C.