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Nissan’s $3M SCRA Violation

WASHINGTON, DC (WSMV) – The Department of Justice announced today that the Nissan Motor Acceptance Corporation (Nissan MAC) has agreed to pay $3 million to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA).

According to the DOJ, the suit alleges that Nissan MAC repossessed 113 vehicles owned by SCRA-protected servicemen and servicewomen without first obtaining the required court orders, and failed to refund up-front capitalized cost reduction (CCR) amounts to servicemembers who lawfully terminated their motor vehicle leases early after receiving military orders.

This settlement is the Justice Department’s 10th settlement with an auto finance provider since 2015 and exemplifies continued efforts to enforce the SCRA’s motor vehicle repossession and lease termination provisions.

The SCRA prohibits repossessing a motor vehicle from a servicemember during military service without a court order if the individual made a deposit or installation payment on the loan before entering military service.

The SCRA also permits servicemembers to terminate motor vehicle leases early without penalty after entering military service or receiving qualifying military orders for a permanent change of station or to deploy.

When servicemen or servicewomen lawfully terminate motor vehicle leases, the SCRA requires that they be refunded all lease amounts paid in advance for a period after the effective date of the termination.

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