Gordon v. Ford Motor Credit Co.

ORDER

PECKHAM, District Judge.

Defendant Ford Motor Credit Company (“FMCC”), an automobile financing company, requires that its customers purchase collision and comprehensive insurance on vehicles financed by FMCC. When FMCC’s customers fail to provide such insurance, the financing agreement entities FMCC to protect its security interest in the financed vehicles by purchasing collateral protection for the vehicles. FMCC purchases this collateral insurance from the American Road Insurance Company (“TARIC”), a related corporation, and transfers those costs to those customers who have failed to…