The auto financing division of Nissan North America has agreed to pay a $4 million fine and make available up to $1 million to customers whose cars the company wrongfully repossessed.
The Consumer Financial Protection Bureau said Tuesday is has issued a consent order against Nissan Motor Acceptance Corp., which is based in the Dallas area, saying the lender violated the Consumer Financial Protection Act by repossessing some customers’ cars and having repo agents keep personal property until clients had paid a storage fee, among other things.
Officials with Nissan told Reuters they are denying any wrongdoing but have agreed to the settlement to move forward. The $1 million pool will make affected borrowers whole for fees and charges and pay them for each day the company held their cars.
The CFPB’s case again NMAC spans actions from 2013 until September of last year and spans hundreds of repossessions. The agency’s investigation also found that Nissan “deprived consumers paying by phone of the ability to select pay-by-phone options with significantly lower fees” during much of this decade.