Investigation into Ford Motor Credit's Lease Practices

A division of Ford Motor Co. is under scrutiny by 21 states for allegedly allowing dealers to overcharge customers who terminated their car leases early. The states claim that Ford Motor Credit withheld information about the payoff amount owed to terminate a lease before its expiration, resulting in some consumers being charged $300 or more in additional payments. The practice has sparked an investigation, with the states seeking to pursue the matter and possibly seek restitution.

Key Takeaways:

• Ford Motor Credit allegedly allowed dealers to overcharge customers who terminated their car leases early, with some consumers being charged $300 or more in additional payments.
• The company withheld information about the payoff amount owed to terminate a lease before its expiration, referring customers to the dealer instead.
• The investigation spans 21 states, with the states seeking to pursue the matter and possibly seek restitution.
• Ford Motor Credit has since stopped using the tactic of withholding information about the payoff amount, but the states want to hold the company accountable for past practices.
• Jack Norris, of the Florida attorney general's office, said the practice was a "tactic of deceit" that cost consumers money.
• Both Ford Motor Credit and the dealer are alleged to have profited from the practice.

Statistics:

• At least $300 in additional payments were charged to some consumers who terminated their car leases early.
• 21 states are investigating Ford Motor Credit's lease practices.
• Ford Motor Credit allegedly withheld information about the payoff amount owed to terminate a lease before its expiration.
• The company's practice of withholding information resulted in some consumers being charged $300 or more in additional payments.

Sources:

• The Wall Street Journal
• Florida attorney general's office