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Saturday, October 19, 2019

Ford Motor Credit, dealership sued by customer over lease's $4,500 early termination penalty


By Carrie Bradon | Jun 28, 2019

SANTA ANA, Calif. (Legal Newsline) – A California consumer alleges an auto dealership and Ford Motor Credit Co. engaged in a fraudulent scheme with the terms of its lease agreements and an early termination penalty.

Zachery Quintana filed a complaint on May 16 in the Orange County Superior Court against David Wilson’s Ford of Orange, Ford Motor Credit Co. LLC and Does 1-30 alleging fraud and deceit, negligence and other counts.

The plaintiff alleges he visited Ford of Orange in April 2014 to lease a vehicle and did so for $13,123. He alleges in February 2015, he contacted Ford Credit and requested an extension of time to make a monthly lease payment. He alleges Ford Credit extended the lease term by month, creating a new end lease date.

He alleges he returned the vehicle in April 2016 at the end of the original 24-month lease term and that no one told him there was one month remaining on the lease. He alleges he received a bill of $4,500 for an early lease termination penalty.

The plaintiff alleges the defendants structured the lease terms in a "confusing and convoluted manner" regarding the early lease termination policy. He allege the defendants "engaged in a fraudulent scheme" to defraud him by interpreting the penalty clause to their advantage.

The plaintiff is seeking trial by jury; incidental, consequential and punitive damages; restitution; compensatory damages; interest; attorneys’ fees and other relief deemed fit. The plaintiff is represented by Hovanes Margarian of The Margarian Law Firm in Glendale, California.

Ford Motor Credit Co. removed the suit to the U.S. District Court for the Central District of California on June 17.

U.S. District Court for the Central District of California case number 8:19-CV-01202

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Orange County Superior Court U.S. District Court for the Central District of California Southern Division

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