Published
March 13, 2026
Updated
August 1, 2026
The proposed State Farm Bank and Afni repossession settlement is valued at more than $110 million, including a $35 million cash fund and at least $75 million in deficiency write-offs. Its May 2026 hearing has passed, but the official site still says the court must decide whether to approve it.
Current Status
The April 23, 2026 exclusion deadline and May 6 fairness hearing have passed. The official website still states that the court must decide whether to approve the settlement and that benefits will be provided only after approval becomes final and any appeals are resolved. No claim form was required: qualifying class members were identified from the defendants' records and would receive benefits automatically if the settlement becomes effective. No payment date is currently posted.StatusFairness Hearing Passed; Approval Not Publicly Confirmed
Claim FormNone Required
Cash Fund$35 Million
Deficiency Write-OffsAt Least $75 Million
What Is the Repossession-Notice Case About?
The counterclaims alleged that State Farm Bank, Afni, and related loan-owning entities sent legally defective notices before and after repossessing and selling collateral. State law can require a presale notice explaining the planned disposition and a post-sale explanation describing the sale and claimed deficiency. The borrowers alleged that the notices did not satisfy those requirements and challenged efforts to collect remaining balances. The defendants deny the allegations, dispute that borrowers could have prevailed, and agreed to settle without an admission of liability.Who Is in the Proposed Class?
The class generally covers people with a secured collateralized loan or financing agreement involving EMVLP LLC, EMVLP II LLC, Twenty-One Eighty-Five LLC, State Farm Bank F.S.B., or Afni Inc. whose property was repossessed and who were mailed presale and post-sale notices on or after July 25, 2017. The notice excludes certain borrowers, including people subject to a final deficiency judgment and some people whose later bankruptcy ended in discharge. The agreement and administrator records control the final determination.The $35 Million Cash Benefit
The proposed settlement creates a $35 million cash fund for class payments and permitted court-approved deductions. Each participating class member would receive a check automatically if the settlement becomes effective. The allocation is tied to loan principal and interest-rate information rather than an equal division among borrowers. The fund amount is therefore not an individual payout estimate, and exact checks cannot be calculated from the public notice alone.At Least $75 Million in Deficiency Relief
The defendants estimated that they would write qualifying outstanding deficiency balances down to zero, providing at least $75 million in debt relief across the class. A deficiency is the amount claimed to remain after repossessed collateral is sold and the sale proceeds are credited to the account. Under the proposal, collection on the covered balance would stop after the settlement becomes effective. This relief is separate from the cash payment, although both depend on final approval.Credit-Reporting Requests
The defendants also agreed to request deletion of certain account information from Equifax, Experian, TransUnion, and Innovis. That could remove negative reporting associated with the covered agreement. The settlement requires the defendants to make the requests but recognizes that the consumer-reporting agencies control their own files. A deletion request should not be described as a guaranteed immediate score increase because credit scores depend on the full credit record and scoring model.Why No Claim Form Was Needed
The settlement uses the defendants' loan and repossession records to identify the class. A person who stayed in the class did not submit a claim for cash, debt relief, or credit-reporting requests. Doing nothing preserved eligibility for all three categories, while excluding oneself was the way to retain the right to pursue the released claims separately. The April 23 opt-out date is over. The lack of a claim form does not mean that benefits were already delivered.Tax and Reporting Terms
The notice says the defendants agreed not to issue an IRS Form 1099-C for the deficiency reduction. That provision does not allow this page to give individual tax advice, and cash or debt relief can have different consequences depending on the borrower's circumstances. Class members should keep the settlement notice and any eventual payment or account documentation for their records.What Happens Next?
The May 6 hearing was the court's opportunity to evaluate fairness, fees, and final judgment. Because the official State Farm Bank notice site still says approval is pending, this article does not turn that hearing into a final order. If the court approves the agreement and the judgment becomes final, the administrator can calculate automatic checks and the defendants can implement the debt and credit-reporting relief. Until then, no payment date should be promised.Case Posture and Scope
The matter is a Missouri state-court case in which Afni sued and borrowers asserted class counterclaims. It concerns the form and legal sufficiency of repossession notices, not every complaint about a State Farm insurance policy or every repossession by an unrelated lender. The proposed value exceeding $110 million combines cash and estimated noncash relief; it should not be read as a $110 million cash payment by State Farm to one person or as an admission that the notices were unlawful.Official Information
Review the latest information on the official State Farm Bank repossession notice site website.
Case
AFNI, Inc. v. Martinez, et al.
Case Number
23SL-AC00070-01
Court
Twenty-First Judicial Circuit Court, St. Louis County, Missouri
Status
Public site says approval pending
Cash Fund
$35 million
Deficiency Write-Offs
At least $75 million
Claim Form
Not required
Fairness Hearing
May 6, 2026
Official Website
official State Farm Bank repossession notice site
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