IRVING, Texas–Nissan Motor Acceptance Corporation has agreed to pay $3 million to resolve charges it repossessed vehicles from men and women who received military orders, according to the U.S. Justice Department.
The Justice Department had earlier field suit alleging NMAC had violated the Servicemembers Civil Relief Act by repossessing 113 vehicles owned by soldiers without obtaining the required paperwork.
In addition, the lender also did not refund up-front costs, such as licensing and registration fees, to those who legally terminated their auto leases due to receiving military orders, the Justice Department added.
“Men and women in uniform risk their lives to serve our country, and Congress enacted the Servicemembers Civil Relief Act to protect them when they serve our nation,” Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division said in the statement. “The U.S. Department of Justice will continue to enforce the Act vigorously in order to protect service members and to ensure that all covered industries comply fully with the law.”
What Law Does
The SCRA makes it illegal to repossess a car or truck from members of the armed forces during military service without a court order if a deposit or payment was made on the loan before entering military service. The law also permits service members to end leases early without penalty if they are forced to deploy or are relocated.