Kansans due money in Ford deal

Company settles leasing allegations

? Thousands of Ford Motor Credit customers, including hundreds in Missouri and Kansas, could receive $100 each as part of a settlement related to the company’s vehicle leasing practices.

The agreement likely will cost Ford Motor Credit and dealerships more than $6 million, the company said Thursday, although Ford’s estimates differed from some projections provided by attorneys general of the 38 states involved in the deal. Costs would include an estimated $1 million in restitution fees to customers, Ford said.

Dealerships will cover most of the costs, said Daniel Jarvis, Ford Motor Credit spokesman.

The settlement affects certain Ford customers who ended a lease before its expiration date and subsequently bought the vehicle. The company’s “Red Carpet” leasing program came under scrutiny when investigators found that the customers faced charges that were sometimes higher than the actual balance owed in the lease.

Dealers notified customers of the balance due, which included an additional charge not owed to Ford Motor Credit under the terms of the lease. The dealer would keep the extra charged to customers, who were unaware of the correct figure, Cox’s office said.

Ford Motor Credit will notify 150,000 customers nationwide of the settlement but estimates that less than 10 percent of them will be eligible for restitution.

In Kansas, 25 Ford and Mercury dealers were part of the settlement, said Kansas Atty. Gen. Phill Kline’s office. Their share of the settlement was not immediately available. The settlement will make 2,187 Kansans eligible for restitution.

It wasn’t immediately known whether Lawrence’s Laird Noller dealership, 935 W. 23rd St., was part of the settlement.

Ford will send a notice to customers affected from 1991 to 1994. Customers who are not notified but believe they could be eligible may call (800) 221-3312.