General Motors' financial services subsidiary will pay nearly $3.6 million to settle charges that it illegally repossessed 71 vehicles and improperly denied more than 1,000 requests from service members to terminate their leases in violation of the Servicemembers Civil Relief Act, or SCRA.
The Justice Department announced Wednesday that it had reached an agreement with GM Financial over a case involving troops who asked to be let out of their auto lease agreements for deployment or relocation.
“The last thing service members should be worried about while deployed is paying off vehicle leases they don't want and can't use,” U.S. Attorney Chad E. Meacham for the Northern District of Texas said in a Justice Department press release.
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In a statement provided to Military.com. GM Financial said it cooperated with the investigation since it first began in 2018 and reached a settlement with the Justice Department on a “subset” of service member accounts.
“Over our 30-year history, GM Financial has maintained a strong track record of fair lending practices and compliance with all regulatory requirements. We remain committed to ensuring the customer experience is handled responsibly, ethically and exceeds the customer's expectation,” the company said.
The Servicemembers Civil Relief Act provides a variety of legal and financial protections for…
