The agreement likely will cost Ford Motor Credit and dealerships more than $6 million, the company said, although Ford's estimates differ from some projections provided by attorneys general of the 39 states expected to be involved in the deal. Costs would include an estimated $1 million in restitution fees to customers, Ford said.

Consumers who terminated lease agreements with local Ford/ Lincoln Mercury dealers from 1991 to 1994 will be notified by Ford Motor Credit.

"Through this settlement, Ford Motor Credit and its dealers are proactively correcting these leasing practices," [Mike Cox] said. "Ford Motor Credit and the participating dealers have taken the steps necessary to resolve the confusion over their leases and provide redress for affected customers."