Get Help With Legal Options vs. Ford Credit

If your dealings with Ford Credit are causing you stress or financial harm, it’s important to know your legal rights. 

You might want to know how to sue Ford Credit, whether you can join a Ford Credit lawsuit, how to get compensation from Ford Credit, or how to hire a lawyer against Ford Credit.

Below are some commonly asked questions about Ford Credit, and some answers…

Editor’s Note: FairShake is not an attorney, law firm, or financial advisor. Our content team conducts research to the best of our ability to ensure this content is accurate, but it does not replace professional financial or legal advice.

What kind of company is Ford Credit?

Ford Credit is a subsidiary of Ford that provides financing products for Ford and Lincoln dealers and consumers who buy and lease cars through those dealers. The company operates internationally.

Ford Credit is a brand name that is short for Ford Motor Credit Company.

ls Ford Credit legit?

Yes, Ford Credit is a legitimate company and they have been around since 1959. However, legitimate companies can still mess things up and harm customers. If you are having issues with your financing situation with Ford Credit, and you don’t think they’ve played by the rules you might consider speaking to an attorney who might be able to offer Insight on legal options.

Who is the CEO of Ford Credit?

According to their website the current President and CEO of Ford Credit is Marion Harris.

Where is Ford Credit headquarters?

 Ford Credit is currently headquartered in Dearborn, Michigan. Their mailing address is One American Road, Dearborn, MI.

How do I contact Ford Credit?

According to the company, there are many ways to contact Ford Credit, starting with customer service at 1-800-727-7000. The customer service line will connect you to a representative during regular business hours (7am to 7pm Central M-F and 7am to 3pm on Saturdays). You can also use the 24-hour automated support system.

If you have an existing account you can use a secure form to send an email and receive a response from a representative within 24 to 48 hours. 

You can also sign in to your account to send secure messages.

If you are having problems with Ford Credit that customer service can’t help with, you might consider submitting your claim for review by an attorney. 

Is there a lawsuit against Ford Credit?

There have been multiple recent lawsuits against Ford Credit:

According to the company’s financial reporting, the types of things Ford Credit has been or might be sued for include “matters arising out of governmental regulations; tax matters; alleged illegal acts resulting in fines or penalties; financial services; employment-related matters; dealer and other contractual relationships; personal injury matters; investor matters; and financial reporting matters.”

For example, from 2016 through 2018, a Texas-based dealership group, Reagor Dykes, was involved in a ponzi scheme worth millions of dollars which resulted in bankruptcy and prison time for the owner who has since attempted to sue Ford Credit. 

If you’re looking to start a lawsuit against Ford Credit, you can tell FairShake about your complaint below.

What laws apply to Ford Credit?

When taking out a car loan from Ford Credit, you’re protected by a variety of federal and state laws.

Some of the laws that apply to Ford Credit car loans include:

Laws requiring Ford Credit to disclose important information about your loan:

• The Truth in Lending Act – The Truth in Lending Act (TILA) guarantees your right to get relevant details before taking out a car loan. It requires that creditors like Ford Credit provide a written disclosure of important terms including the annual percentage rate (APR), finance charge, monthly payment amount, payment due dates, amount financed, length of the credit agreement, and any charges for late payment. If Ford Credit fails to provide this information prior to obtaining your signature, they’ve violated the Truth in Lending Act and you may have a legal complaint. 
• Consumer Leasing Act – The Consumer Leasing Act is another federal law that guarantees you receive additional important information when leasing a car. This law requires whoever is offering a lease (in this case Ford Credit), to disclose certain information including:
  •  the amount due at lease signing or delivery; 
  • the number and amount of monthly payments; 
  • all other fees charged under the agreement, such as license fees, taxes, payments due at the end of the lease, and any charges for excess mileage.
  • penalties charged for late payment or default; 
  • conditions under which the lease can be ended early (and penalties for doing so); 
  • whether you have a right to buy the vehicle at the end of the lease and the price to do so.
• Credit Practices Rule  – If you’re a cosigner on a Ford Credit loan, the Credit Practices Rule provides important protections. This is a regulation from the Federal Reserve that, among other things, protects the rights of cosigners on loans. Creditors like Ford Credit must provide a written notice to potential cosigners about their liability if the other person fails to pay. The Act also prohibits late charges in some situations and prohibits creditors from using certain contract provisions that the government has found to be unfair to consumers.
• Consumer Credit Protection Act – If Ford Credit denied you credit, they may owe you information under this law. The Consumer Credit Protection Act requires certain creditors to provide consumers with information if the creditor denies them financing.
• Ford Credit is bound by Risk-Based Pricing rules. This rule means Ford Credit has to provide you a written notice if they gave you less favorable lending terms than other borrowers with similar credit histories and credit scores. Ford Credit has to explain why you received less favorable lending terms. 

Laws that protect you if the car you’ve financed through Ford Credit is faulty:

• Uniform Commercial Code (“UCC”) – The Uniform Commercial Code is a set of state laws that provide you fundamental rights in consumer transactions. Every state and DC has adopted all or most of the UCC. Article 2 of the UCC defines key laws that protect you in buying or leasing a car including lemon laws and express warranties. Article 2A of the UCC applies specifically to leases.
  • Lemon laws enable purchasers to have a defect repaired, or to receive a replacement or a refund. You can find more information on your state’s lemon laws here.
  • An express warranty is a fact or promise provided by the seller that becomes enforceable by the buyer as a “basis” of the sale. 
• Magnuson-Moss Warranty Act – If you’ve been offered a warranty on your vehicle, the Magnuson-Moss Act provides important protections. This federal law applies to any consumer goods with a retail price of $15 or more, and requires a seller making an express warranty to fully disclose the warranty’s terms and conditions. Sales agreements may not limit consumers’ rights under any implied warranties; may not impose any duties on consumers to take advantage of warranties other than notifying the seller of defects; and the seller must attempt repair, replacement, or refund if possible

Laws that protect you against lending discrimination by Ford Credit:

• Equal Credit Opportunity Act (“ECOA”) – The ECOA is a federal act that prohibits denying credit, or charging more for credit, based on a list of protected factors including race, color, religion, national origin, sex, marital status, age, and receipt of public assistance. If you feel you’ve been discriminated against in applying for a Ford Credit loan, this law may apply.

Laws that protect you against Ford Credit debt collectors:

• Fair Debt Collection Practices Act (“FDCPA”) The FDCPA protects you from aggressive debt collection tactics by regulating the ways in which companies like Ford Credit are allowed to collect on a debt. 

If you believe that Ford Credit has punished you or denied you financing because of discrimination, incorrectly reported information on your credit report, or violated any other federal laws that apply to their organization, you may wish to speak with an attorney about how to sue Ford Credit.

Also from FairShake:

• Introduction to Car Lending Laws
• The Truth in Lending Act — Explained
• 10 Consumer Protection Laws to Know About
• What is the Fair Debt Collection Practices Act?
• Understand the Fair Credit Reporting Act

What can I do if a salesperson lied to me about a Ford Credit loan?

If a salesperson lied to you about a Ford Credit loan, you may be able to start a lawsuit.

Some common tactics by creditors that violate the Truth in Lending Act (TILA) include failing to accurately disclose the finance charge and APR, or applying penalty fees exceeding TILA limits.

If Ford Credit misled you to make a sale you are entitled to take action against them. Tell us more about it below for the chance to be matched with an attorney.

If you were sold a car with defects you didn’t know about, you can also pursue your rights under the law.

If your car is under warranty, lemon laws require the vehicle manufacturer to repair it. If your vehicle cannot be repaired or a defect is too severe, you are entitled to a refund or a replacement vehicle. (The specifics of lemon laws vary by state, however. In some states lemon laws only cover new vehicles, while in other states they apply to both new and used vehicles.)

Can a Ford Credit car loan be discharged in bankruptcy?

How your Ford Credit car loan will be treated in bankruptcy depends on the type of bankruptcy you’re filing for. Unfortunately, you’re unlikely to be able to wipe out the debt while keeping the car.

Under a Chapter 7 bankruptcy or “liquidation bankruptcy,” a car loan will not be discharged because it is a secured debt.

• Secured creditors—which include car loan holders—can require you to sign a reaffirmation agreement. A reaffirmation agreement between the creditor and debtor waives the discharge of debt in a pending bankruptcy proceeding. You will be required to maintain your monthly payments – upon default, the creditor has the right to repossess your car.
• However, Chapter 7 grants you the right to redeem your car. To redeem your vehicle, you must pay a lump sum equal to its replacement value, which can be much lower than the amount that remains on your loan.

A Chapter 13 bankruptcy, or “wage earners bankruptcy” allows a debtor to keep the property while restructuring the debts to pay them over time, usually three to five years. 

• If you default on payment schedule coming out of Chapter 13 bankruptcy, the lender can still repossess your car.
• If the balance of your loan is more than your car is worth, you can pay back the balance based on the current value rather than the contracted loan balance. This is known as a “cram down” and can lower your payment if you owe more than the car is worth.

How do I file a complaint against Ford Credit?

There are several ways you can file a complaint against Ford Credit. 

1. You can try your luck with Ford Credit customer service. This ensures the company is aware of your issue, but if you’ve made it this far you’ve probably tried this already and still have serious issues.
2. You can also file a complaint with your state government. If you believe that Ford Credit has violated state laws, you can reach out to your state attorney general or the other relevant body in your state. This doesn’t guarantee a resolution, but it’s worth knowing about as it could result in punitive action against Ford Credit.
3. The most effective resource may be to bring a legal action to sue Ford Credit. You should consider working with a lawyer against Ford Credit if you opt for this route, as they’ll know the procedures to follow and can give you an idea of what to expect. FairShake helps match individuals to lawyers – tell us more about your issue below.

How many payments can you miss before Ford Credit repossesses the car?

There is no specific number of payments you can miss before Ford Credit repossesses your car, but the industry average is three. Once you miss three or more payments, auto loan companies can start the repossession process. However some companies only provide a 60 day grace period (meaning two missed payments).

If you have extenuating circumstances it may be in your best interest to reach out to Ford Credit to let them know what’s going on and try to find a temporary resolution before repossession.

Will missed payments to Ford Credit hurt my credit?

Yes, missed payments to Ford Credit will hurt your credit score. You can improve your credit score by making as many timely payments as you can, and limiting how many/how often you have a missed payment. The best thing you can do in this situation is contact Ford Credit to see if they can make a note in your account or provide some temporary relief if you know you will miss a payment. If you continue to miss payments, your account can be sent to collections, which gets reported to the credit bureaus and will harm your credit score even more. 

Ford Credit has the right to report payment information, including missed payments, to the credit bureaus. If they have incorrectly reported information, though, you can seek a resolution with the Fair Credit Reporting Act. 

Can I get a lawyer against Ford Credit?

Yes, you may be able to get a lawyer against Ford Credit. A lawyer can potentially help you get compensation and justice from Ford Credit, depending on your circumstances. And an attorney can help you figure out what legal options you have if Ford Credit has broken the law or caused you financial harm.

If you share your issue with FairShake, we may be able to match you with an attorney. Attorneys with whom FairShake partners will never charge you up front. You only pay if you get compensation.

How do I sue Ford Credit?

If you have an issue with Ford Credit, you might be able to sue Ford Credit. How you sue is based on your circumstances, the issue you have with Ford Credit, and which laws apply to that issue. It is best to speak with an attorney who can look over your loan contract and provide legal advice.

What you are allowed to do and how much you can get in compensation if you do sue Ford Credit varies from one court to the next and depends upon the issue you have, what laws were broken, and what court you use. An attorney can help you review which options work best for your circumstances and the compensation you want. 

Some ways customers sue companies like Ford Credit:

Consumer Arbitration

Consumer arbitration is a legally binding alternative to traditional lawsuits. The terms of your contract might say that you are not allowed to join an existing Ford Credit lawsuit or sue Ford Credit in other courts, in which case, consumer arbitration can help you get compensation or a resolution. With consumer arbitration you can still work with an attorney but your issue will be decided by an independent arbitrator rather than a public court.

Small Claims Court

Another option is to sue Ford Credit in small claims court. Small claims courts are limited in the sort of claims they can take: there are limits for each state on the amount of monetary compensation they can provide, and they may not be able to provide non-financial relief.

Federal or State Courts

If Ford Credit violated state or federal law, you might be able to sue them at the state or federal level.. 

Tell us more below about your Ford Credit complaint: