The bank, Ally Financial, has agreed to a settlement of $19.7 million in order to end a class action lawsuit. The company allegedly failed to disclose hidden fees part of their lease-to-purchase program called “SmartLease Contracts.”
This settlement will go toward refunds for affected Ally clients. Records revealed consumers paid anywhere from $50 to $1,000 extra for their cars than the price listed on the lease, an average of $238.06.
“Ally continues to believe that its customer experience is best in class, but also believes that settling the case at this time is in the best interests of all parties,” an Ally spokeswoman said in a statement. A final approval hearing is expected in early October.