Ford Credit Error Costs Ford Stockholders up to $87,000,000

DETROIT, Aug 12 Reutersis reporting that Ford Motor Co.had settled a class-action lawsuit over vehicle leasing for as much as $87 million, depending on claims from 1.8 million customers nationwide.

The company said in a quarterly filing with the U.S. Securities and Exchange Commission that it had settled a class-action lawsuit filed in August 2001 in Maryland against its vehicle financing arm, Ford Credit. The lawsuit by two Mazda owners claimed Ford Credit's late fees on leases exceeded 6 percent, the maximum rate allowed under Maryland law.

Ford said it mailed notices of the settlement to 1.8 million customers in July, and that if all submitted claims the maximum amount the automaker would have to pay is $80 million.

Ford also said it agreed to pay about $7 million to the attorneys in the case; a hearing for the final approval of the settlement is set for Sept. 20.

A Ford Credit spokesman could not immediately be reached for comment; other Ford spokespeople declined to comment. The company provided no further details about the suit in its filing.