Ford Motor Credit Co. is issuing $100 restitution checks as part of a settlement affecting as many as 150,000 people in 37 states who allegedly were overcharged for early termination on a Red Carpet lease between 1991 and 1994.
Ford's leasing practices were called into question by State of Michigan investigators who found that dealers sometimes were overcharging lessees for lease termination beyond the terms agreed upon in the leasing contract and keeping the extra amount. Some 1,300 Ford and Lincoln Mercury dealers nationwide are involved in the action.
Ford says the problem was resolved by 1995 and only a portion of the 150,000 potentially affected customers will be issued refunds.
Ford will reimburse Michigan its $485,500 in legal fees, while other states have separate agreements with Ford under the settlement. Ford Motor Co. and its dealers racked up their own $6.2 million legal bill over the issue.