GM Financial to pay over $3.5 mln to resolve claims it violated U.S. law
Source: Reuters
WASHINGTON, Oct 5 (Reuters) - GM Financial, a unit of General Motors Co (GM.N), agreed to pay over $3.5 million to resolve allegations it violated a U.S. federal law that provides certain benefits and protections to eligible servicemembers, the Justice Department said.
GM Financial was accused of violating the Servicemembers Civil Relief Act by illegally repossessing 71 servicemembers' vehicles and by improperly denying or mishandling over 1,000 vehicle lease termination requests, the Justice Department said in a statement on Wednesday.
GM Financial has agreed to pay $3.5 million to the affected servicemembers and a $65,480 civil penalty to the government, the Justice Department said, adding that the company will pay at least $10,000 to each of the 71 servicemembers who had their vehicles unlawfully repossessed.
GM Financial, in an emailed statement, acknowledged the settlement reached with the Justice Department and said it had cooperated throughout the probe.
Read more: https://www.reuters.com/legal/gm-financial-pay-over-35-mln-resolve-claims-it-violated-us-law-2022-10-05/
DOJ press release: https://www.justice.gov/opa/pr/gm-financial-pay-over-35-million-resolve-servicemembers-civil-relief-act-claims
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