GM Financial Pays $388M To Settle Calif. Repo Suit

Law360, New York (June 5, 2012, 5:02 PM EDT) -- General Motors Financial Company Inc., formerly AmeriCredit Financial Services, on Friday agreed to pay $388 million to settle claims that AmeriCredit violated California state law by failing to properly notify thousands of borrowers before selling their repossessed cars.

The huge settlement comes a little more than four months after U.S. District Judge Dana M. Sabraw ruled that AmeriCredit had violated the California Automobile Sales Finance Act by improperly attempting to collect so-called deficiency balances — money still owed after a repossessed car is auctioned.

The ASFA,...
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