Servicemembers File SCRA Class Action Lawsuit Against Ford

A federal class action lawsuit filed in New Jersey claims that Ford Motor Credit Company (NASDAQ: F) violated the Servicemembers Civil Relief Act (SCRA) by refusing to give pro rata refunds of upfront lease payments to people called to military service. The Act mandates that following termination of a vehicle lease, the servicemember is entitled to a prorated refund of any upfront payments they made that correspond to the unused portion of the lease.

The Ford SCRA class action lawsuit was filed by Army National Guard member Marc C. Demarest, who was called to military service on May 16, 2004. Demarest was currently leasing a 2003 Ford Expedition, which he acquired in November 2002. According to the class action lawsuit, Demarest provided all required notices to Ford Motor Credit Company that he was invoking his rights under the Servicemembers Civil Relief Act and returned the Expedition to Ford.

Demarest claims he prepaid nearly $5,000 on the vehicle, but did not receive a refund from Ford. The SCRA requires companies to provide prorated refunds within 30 days of the return of the vehicle.

The Ford Motor Credit Company SCRA class action lawsuit is brought on behalf of all persons who terminated their leases pursuant to the Servicemembers Civil Relief Act and were not timely refunded the prorated advance lease payments. It is seeking damages for the proposed Class, attorneys’ fees and injunctive relief prohibiting Ford Motor Credit Company from further violating the SCRA.

A copy of the Ford Motor Credit Company SCRA Class Action Lawsuit can be read here.

The case is Marc C. Demarest v. Ford Motor Credit Company, U.S. District Court, District of New Jersey.