$3M Cash Settlement for Troops over Repos

Nissan Motor Acceptance Corp., the financial services arm for Nissan North America, settled a federal lawsuit Aug. 1 alleging violations of a law that helps members of the military by suspending certain financial obligations during active duty.

The $3 million settlement was reached the same day the government’s complaint was filed; the investigation, however, began at least in December 2016 when the government first notified Nissan that it was looking into the alleged misconduct.

The lawsuit alleged that Nissan repossessed at least 113 service members’ vehicles without a court order and failed to refund certain upfront payments after many service members terminated their leases, as required by law. Nissan did not admit to any wrongdoing in the settlement.

The settlement covers conduct alleged to have occurred from 2008 through November of 2018. The agreement specifies that over $2.9 million of the $3 million settlement will be put in a fund to compensate the 113 service members whose vehicles were repossessed, as well as those who didn’t get their CCR refunds; the rest will go to the Treasury.

It is the 10th settlement reached between the government and an auto finance provider for violations of the law protecting service members since 2015, according to the Justice Department.

Source: militarytimes.com.