State attorneys general send letter to auto manufacturers regarding Covid-19 practices

State Issues Covid-19 State Attorney General Auto Finance

On May 20, a coalition of state attorneys general sent a letter to ten major auto manufacturers relating to reports that dealerships have been engaging in predatory and harmful practices in connection with the return of leased vehicles during the Covid-19 pandemic. The coalition calls upon auto manufacturers to ensure that their financing arms and affiliated dealerships have appropriate controls to timely accept the return of leased vehicles during the pandemic. Further, car dealerships are urged to take certain steps, such as reviewing their lease-return policies for compliance with applicable law, assisting consumers with convenient lease returns, and refunding harmed consumers for certain costs arising from refused lease returns.