GM Financial to Pay 3.5 Million for Illegal Repossessions

GM Financial, GM’s finance arm, has agreed to pay 3.5 million to settle allegations that they breached US federal law in violating the Servicemembers Civil Relief Act by illegally repossessing 71 vehicles and by mishandling over 1,000 vehicle lease termination requests.  the Servicemembers Civil Relief Act by illegally repossessing 71 vehicles and by mishandling over 1,000 vehicle lease termination requests. 

GM Financial is to pay $3.5 million to the affected servicemembers and a $65,480 civil penalty to the government. In addition, $10,000 will be paid directly to each of the 71 servicemembers who had their vehicles unlawfully repossessed. 

The department alleges that GM Financial has improperly denied lease termination requests, charged illegitimate early termination fees, and failed to provide timely refunds of lease amounts since 2015.  https://gmauthority.com/