Enforcement case record
BMW Financial Services: $2.1 Million in Unrefunded Lease Payments
- Defendant
- BMW Financial Services
- Year
- 2018
- Scale
- 492 servicemembers
- Statute
- 50 U.S.C. § 3955
- Court
- D.N.J.
- Outcome
- Settlement (February 22, 2018): $2,165,518.84 to 492 servicemembers and $60,788 to the U.S. Treasury, plus changes to lease termination policies and employee training.
What happened
On February 22, 2018 the United States filed a complaint and entered a settlement agreement in United States v. BMW Financial Services, a pattern or practice case alleging failure to refund pre-paid lease amounts to servicemembers who terminated motor vehicle leases early after receiving military orders.
Nothing here is about refusing the termination. BMW FS let the leases end; the violation was keeping money the servicemembers had already paid forward.
Section 3955 lets a servicemember terminate a motor vehicle lease on qualifying orders, and requires that lease amounts paid in advance for a period after the termination date be refunded within 30 days of the effective termination date. The refund is not conditional on the servicemember asking for it.
The law behind this: 50 U.S.C. § 3955
Termination of residential or motor vehicle leases: read the statute.
Who was covered
The 492 servicemembers who terminated a BMW Financial Services motor vehicle lease early on qualifying military orders and were not refunded amounts paid in advance.
What the settlement paid
- $2,165,518.84 paid to 492 servicemembers, an average of roughly $4,400 each.
- $60,788 to the United States Treasury.
- Changes to lease termination policies to ensure required refunds are provided, plus employee training.
Why this case matters
The quietest violation shape in the ledger. A servicemember whose lease was correctly terminated has no reason to suspect anything went wrong, which is why it took a federal pattern case to surface it.
If you think you were affected
Lease cases turn on paperwork you may still have: your orders, your written termination notice, and the date it was delivered.
This page is a record of a public enforcement action against BMW Financial Services. It is not a claim form, and this site cannot tell you whether you are in the covered group. These are the routes that can.
- Read the Justice Department’s own record: DOJ case page: United States v. BMW Financial Services (D.N.J.) . Settlement administration and any claim process are run from there, never from here.
- Start with the § 3955 termination rules and refund deadlines , which is the protection this case was brought under.
- Contact your nearest Armed Forces Legal Assistance office. It is free for servicemembers and dependents, and it is the right first call on any SCRA question about your own accounts. Our guide to SCRA legal help explains the options.
- Confirm your covered dates before you argue about them. The Defense Manpower Data Center issues a free military status certificate; our walkthrough shows how to pull one.
Other lease cases
Every figure on this page is transcribed from the Justice Department record linked above, including its own hedges. Nothing is estimated or rounded. The ledger was last checked in full on July 11, 2026.
Heads up: SCRA Saver publishes general information, not legal or financial advice. Laws change and every situation differs. Confirm details with your installation legal assistance office (free for service members) or a licensed professional.