Ashley Milano  |  August 22, 2016

Category: Closed Class Actions

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

This settlement is closed!

Please see what other class action settlements you might qualify to claim cash from in our Open Settlements directory!

American Honda Finance (“Honda”) has agreed to settle a class action lawsuit alleging the company failed to refund pro rata portions of certain customers’ lease capitalized cost reduction – in violation of the Servicemembers Civil Relief Act (SCRA).

Plaintiff Barry Durm, Jr. of Maryland brought the nationwide class action lawsuit against Honda in Jan. 2013, claiming a federal law known as the Servicemembers Civil Relief Act required Honda to partially refund the down payment on his lease after he was deployed to active duty and terminated his lease.

The SCRA specifically permits service members to terminate motor vehicle, real estate and certain other leases without penalty and mandates refunds of the pro rata portion of any pre-paid lease payments that correspond to the unused portion of the lease.

Congress noted in its most recent amendments to the SCRA in 2010 that “servicemembers are not choosing to end these contracts before they are fulfilled, they are doing so because they have been ordered by the U.S. government to deploy into combat or change stations and they should not face a penalty for obeying that call.”

According to Durm, following the termination of his Honda lease, Honda kept all of Sergeant Durm’s Capitalized Cost Reduction payment, despite the fact that Durm chose to prepay $5,765.48 of his 36-month lease obligation with a voluntary Capitalized Cost Reduction Payment.

However, in Dec. 2011 Durm’s reserve unit was ordered to active duty for deployment overseas, and was only able to use part of the period for which he paid.

Under the terms of the Honda SCRA class action lawsuit settlement, Class Members’ accounts that have been “flagged” in Honda’s electronic records as “SCRA” will receive an automatic refund of the pro rata amount of their cash capitalized cost reduction payment corresponding to the amount of time remaining on their lease when they terminated it under the Act.

Class Members whose accounts have not been flagged in Honda’s system as “SCRA” must submit a Claim Form to be eligible to receive a pro rata refund.

Honda believes it did nothing wrong but is willing to settle the case to avoid the costs and risks of litigation.

Who’s Eligible

Under the terms of the SCRA class action lawsuit settlement, you are a Class Member if you:

  • Made a cash down payment on a lease of a Honda or Acura vehicle
  • Terminated that lease early under the Servicemembers Civil Relief Act (for example, because you were deployed overseas) at any time after Jan. 1, 2008 through Apr. 27, 2015
  • You did not receive a pro rata refund of your down payment

Note: You are not eligible if you work for Honda or one of its affiliated companies.

Potential Award

VARIES.

Honda has agreed to refund a portion of the cash down payments service members paid when they leased their vehicles if they terminated their lease early under the SCRA sometime after Jan. 1, 2008 through April 27, 2015.

The refund will be based on how much time was left on the lease when it was terminated.

Any refund will be lowered if you missed lease payments or incurred other fees, but no deductions will be made for excess mileage or wear and tear.

For example, if you made a down payment of $1,000 and then terminated your lease under the SCRA halfway through the lease, but you also missed a lease payment of $300, then you would be entitled to a refund of $200 (half of $1,000 is $500; subtract the $300 missed lease payment and the refund equals $200).

Only refunds of $5 or more will be issued.

Proof of Purchase

N/A.

Claim Form Deadline

12/31/2016

Case Name

Barry Durm Jr., et al. v. American Honda Finance Corporation, et al., Case No. 1:13-cv-00223-WDQ, in the U.S. District Court for the District of Maryland

Final Hearing

11/02/2015

Settlement Website
Claims Administrator

SCRA Class Action Settlement
Settlement Administrator
PO Box 2718
Torrance, CA 90509
844-455-8054

Class Counsel

Thomas T. Booth, Jr.
LAW OFFICES OF THOMAS T. BOOTH, JR. LLC

Michael J. DeBendictis
DEBENEDICTIS & DEBENEDICTIS LLC

Defense Counsel

Eric S. Mattson
SIDNEY AUSTIN LLP

WILSON ELSER MOSKOWITZ EDELMAN AND DICKER LLP

We tell you about cash you can claim EVERY WEEK! Sign up for our free newsletter.

One thought on Honda Finance SCRA Class Action Lawsuit Settlement

  1. Strategic Options says:

    Way to screw over our service members!

Leave a Reply

Your email address will not be published. By submitting your comment and contact information, you agree to receive marketing emails from Top Class Actions regarding this and/or similar lawsuits or settlements, and/or to be contacted by an attorney or law firm to discuss the details of your potential case at no charge to you if you qualify. Required fields are marked *

Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.