WASHINGTON — GM Monetary, the captive finance unit of Normal Motors, agreed to pay over $3.5 million to resolve allegations it violated a U.S. federal regulation that gives sure advantages and protections to eligible service members, the Justice Division mentioned.
GM Monetary was accused of violating the Servicemembers Civil Aid Act by illegally repossessing 71 service members’ autos and by improperly denying or mishandling over 1,000 car lease termination requests, the Justice Division mentioned in an announcement on Wednesday.
GM Monetary didn’t instantly reply to a request for remark. It’s a wholly owned subsidiary of Normal Motors, and gives financing for car gross sales and leases. In 2021, GM Monetary had income exceeding $13 billion.
In a grievance filed in U.S. District Court docket in Dallas, the division alleged that since 2015 GM Monetary had improperly denied servicemembers’ lease termination requests, charged servicemembers improper early termination charges or lease quantities after the date of termination, and failed to offer servicemembers well timed refunds of lease quantities they paid upfront.
GM Monetary has agreed to pay $3.5 million to the affected servicemembers and a $65,480 civil penalty to the U.S. authorities, the Justice Division mentioned, including that the corporate pays a minimum of $10,000 to every of the 71 servicemembers who had their autos unlawfully repossessed.
The Justice Division mentioned it started investigating GM Monetary after receiving a grievance a few potential violation involving a U.S. Military chief warrant officer.
