Collateral protection insurance litigation continues to wreak havoc with auto lenders. The latest victims: NationsBank Corp. and Toyota Motor Credit Corp.

Last week, in federal district court in Miami, Charlotte-based NationsBank agreed to pay $5.6 million to settle class action claims from 55,000 borrowers in seven states. Spokesman Ellison Clary said NationsBank settled the case without admitting any guilt.

Subscribe Now

Access to authoritative analysis and perspective and our data-driven report series.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.