Business ProfileforGM Financial

The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency.  If the matter is being appealed, it will be noted below.

On February 23, 2022, Americredit Financial Services, Inc, dba GM Financial entered into an assurance of discontinuance with The Commonwealth of Massachusetts, through the Office of Attorney General Maura Healey.

The Office of Attorney General's review of GM Financial's activities alleged that GM Financial provided defective pre-sale or post-sale repossession related notices during the period from July 17, 2013, through July 18, 2014, to various consumers ineligible for compensation and failed to refund certain consumers interest on unearned premiums on guaranteed asset protection (GAP) contracts, as required.

As a resolution of these issues, the Office of the Attorney General has agreed on an Assurance of Discontinuance which does not constitute an admission by GM Financial of noncompliance with any state or federal law, rule, or regulation.

As remediation GM Financial shall pay $1,849,182 to an independent trust for purposes of making payments to provide relief for eligible customers, paying costs of implementation, and paying the Attorney General's costs of the investigation.  

For more details go to https://www.mass.gov/doc/gm-financial-final-aod/download

The following describes a government action that has been resolved by either settlement or a decision by a court or administrative agency.  If the matter is being appealed, it will be noted below.

On October 4, 2022, Americredit Financial Services, Inc. DBA GM Financial, entered into a consent order filed in the U.S. District Court for the Northern District District of Texas.  The Consent Order resolves the allegations GM Financial violated the Servicemembers Civil Relief Act by rejecting requests from qualified servicemembers to terminate their motor vehicle leases early, failing to correctly possess the early termination of servicemembers' motor vehicle leases that were accepted, and repossessing motor vehicles from servicemembers without court orders.  

GM Financial and its affiliates are required to allow servicemembers who meet the requirements to terminate their motor vehicle leases early without penalty upon receipt of qualifying military orders; process motor vehicle lease terminations and refund lease amounts paid in advance within 30 days of the effective date of the termination; and comply fully with all relevant provisions of the SCRA prohibiting the repossession of motor vehicles of "SCRA-protected servicemembers" without a court order, while the servicemember is in military service, provided they paid a deposit on the motor vehicle or installment on the loan while not in military service.  

GM Financial is ordered to deposit $3,534,171 into an interest-bearing escrow account to compensate servicemembers lessees and provide written verification of the deposit to the United States within 3 business days of depositing the funds. GM Financial must request within sixty (60) calendar days following the effective date of the Consent Order, all credit bureaus to remove negative entries for the servicemember(s) and any co-lessee, delete trade lines for accounts belonging to servicemember(s) and any co-borrowers (or co-lessees) specifically to the wrongful repossessions addressed in the Consent Order. Within sixty days after the completion of its obligations, GM Financial shall provide the United States with an accounting of all credit entries repaired.  

GM Financial is also ordered to pay a civil penalty of $65,480 to the United States Treasury.

For more details go to: https://www.justice.gov/opa/press-release/file/1540976/download