{"id":48020,"date":"2019-08-06T21:45:23","date_gmt":"2019-08-06T21:45:23","guid":{"rendered":"https:\/\/one.sightlinemg.com\/airforcetimes\/uncategorized\/2019\/08\/06\/cash-settlement-for-troops-whose-cars-were-repossessed\/"},"modified":"2026-08-08T08:02:08","modified_gmt":"2026-08-08T08:02:08","slug":"cash-settlement-for-troops-whose-cars-were-repossessed","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/airforcetimes\/news\/your-air-force\/2019\/08\/06\/cash-settlement-for-troops-whose-cars-were-repossessed\/","title":{"rendered":"Cash settlement for troops whose cars were repossessed"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">WASHINGTON \u2014 Nissan Motor Acceptance Corp., the financial services arm for Nissan North America, settled a federal lawsuit Thursdays alleging violations of a law that helps members of the military by suspending certain financial obligations during active duty. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The $3 million settlement was reached the same day the government\u2019s complaint was filed; the investigation, however, had been going on since at least December 2016 when the government first notified Nissan that it was looking into the alleged misconduct. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The lawsuit alleged that Nissan repossessed at least 113 service members\u2019 vehicles without a court order and failed to refund certain upfront payments after many service members terminated their leases, as required by law. Nissan did not admit to any wrongdoing in the settlement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The purpose of the <a href=\"https:\/\/www.militarytimes.com\/home-hq\/2018\/02\/02\/scra-and-your-home-6-facts-to-know\/\" target=_blank>Servicemembers Civil Relief Act <\/a>is \u201cto enable [service members] to devote their entire energy to the defense needs of the Nation,\u201d according to the government\u2019s complaint.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/militarytimes\/management\/pay-benefits\/2018\/03\/05\/vehicle-leasing-company-to-pay-more-than-2-million-for-military-rights-allegations\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"173\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/gavel-and-money.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Company to pay $2.2 million to settle troops\u2019 refund claims on canceled car leases<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">BMW Financial Services will pay more than $2 million to 492 service members to settle allegations of SCRA violations since August 2011.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">The amounts the government contended Nissan failed to refund were capitalized cost reduction (CCR) payments, which are initial payments, including the value of a trade-in, intended to reduce the cost of financing. Nissan argued that those payments do not qualify as \u201clease amounts\u201d that need to be refunded under the law. Nonetheless, Nissan revised its policy effective November 2018 to conform to the government\u2019s interpretation, according to the settlement. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The settlement covers conduct alleged to have occurred from 2008 through November of 2018. The agreement specifies that over $2.9 million of the $3 million settlement will be put in a fund to compensate the 113 service members whose vehicles were repossessed, as well as those who didn\u2019t get their CCR refunds; the rest will go to the Treasury. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It also requires Nissan to make efforts to restore the credit ratings of all service members and co-borrowers whose vehicles were repossessed, but credit bureaus ultimately decide whether to make requested modifications to a credit report.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Going forward, Nissan must modify its policies and training related to repossessions and refunds of CCR payments to ensure the problem doesn\u2019t happen again. The Justice Department will monitor Nissan over the next four years to ensure that it complies.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In an email responding to a request for comment, Nissan said: \u201cNMAC denies any wrongdoing but has agreed to settle with the Department of Justice in the best interest for all parties. NMAC worked closely with the DOJ to reach the settlement agreement and to provide appropriate relief for affected service members.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It is the 10th settlement reached between the government and an auto finance provider for violations of the law protecting service members since 2015, according to the Justice Department. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nissan Motor Acceptance Corp., the financial services arm for Nissan North America, settled a federal lawsuit Thursdays alleging violations of a law that helps members of the military by suspending certain financial obligations during active duty.<\/p>\n","protected":false},"author":7,"featured_media":33405,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":67,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[101,16,26,8,67],"tags":[],"coauthors":[6285],"class_list":["post-48020","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news-roundup","category-news","category-newsletters","category-pay-benefits","category-your-air-force"],"acf":{"subheadline":"","legacy_arc_id":"SDGSGSRBAVEX3BREHGSAPO3FMA","arc_canonical_url":"\/news\/your-military\/2019\/08\/06\/cash-settlement-for-troops-whose-cars-were-repossessed\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented By:"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.0 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Cash settlement for troops whose cars were repossessed - Air Force TImes<\/title>\n<meta name=\"description\" content=\"Nissan Motor Acceptance Corp., the financial services arm for Nissan North America, settled a federal lawsuit Thursdays alleging violations of a law that helps members of the military by suspending certain financial obligations during active duty.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Cash settlement for troops whose cars were repossessed\" \/>\n<meta property=\"og:description\" content=\"Nissan Motor Acceptance Corp., the financial services arm for Nissan North 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