ContractsProf Blog

Editor: Jeremy Telman
Oklahoma City University
School of Law

Wednesday, November 23, 2022

GM to Pay $3.5 Million to Settle Claims Arising Under Servicemembers Civil Relief Act

GM LogoJordyn Grzelewski reports in The Detroit News that GM Financial has agreed to pay U.S military personnel $3.5 million to address breaches of lease agreements in violation of the Servicemembers Civil Relief Act (SCRA).  The SCRA prohibits auto financing and leasing companies from repossessing the vehicles of service members without a Seal_of_the_United_States_Space_Force.svgcourt order if the service members have made even one payment before entering the military.  It also allows service members to terminate their leases under certain conditions.

The Department of Justice began an investigation in 2018 and discovered that GM Financial had violated the SCRA in over 1000 cases, including 71 in which it unlawfully repossessed service members' vehicles.

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