Military Personnel to Receive $3.5M to Settle Allegations Regarding Vehicle Leases
GM Financial has agreed to pay more than $3.5 million to resolve Justice Department allegations that it illegally repossessed the vehicles of 71 service members and improperly denied or mishandled over 1,000 requests for lease terminations, in violation of the Servicemembers Civil Relief Act.
The investigation began with the complaint of a soldier who had terminated his lease and turned in his vehicle before being deployed — then received a letter while on deployment demanding more than $15,000 for the remaining period of his lease.
GM Financial will pay at least $10,000 to each of the 71 service members whose vehicles have been illegally repossessed since 2015, plus any lost equity on the vehicle and interest on that equity. For service members who were charged a fee when they terminated their vehicle leases, the company will refund the fee and pay additional damages of three times the fee or $500, whichever is greater. Those whose requests to terminate their lease was denied will receive a refund of certain payments, plus up to $5,000. The company is also required to make sure the troops’ credit records are repaired.
