The settlement provides a $100 cash payment to qualified customers who purchased leased vehicles in the early to mid-1990s. The lawsuit filed in 38 states claims customers with Ford and Lincoln Mercury products were overcharged when they returned their "red carpet" lease vehicles early and subsequently purchased the vehicle. Customers who returned a leased vehicle between 1991 and 1994 will be contacted by mail at their last known address. Anyone who returned a leased Ford vehicle after 1995 will have to register for the $100 refund by calling the settlement administrator.

The company's "Red Carpet" leasing program came under scrutiny when investigators found that customers were forced to pay 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, according to the office of Michigan Attorney General Mike Cox.

Persons who leased a Ford or Lincoln Mercury vehicle through a “Red Carpet” lease in the following states may be eligible to take part in the settlement: Alabama, Arizona, Arkansas, Connecticut, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, Nevada, New Jersey, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Utah, Vermont, Virginia, it's Washington, and Wisconsin.