Alabama is one of 39 states involved in the settlement with Ford.
The company will pay all consumer restitution and the state as part of the settlement. Ford Credit will also pay $500,000 in fees and court costs.
Investigators became suspicious of the "Red Carpet" leasing program after they discovered early lease termination and vehicle purchases that resulted in higher charges than the actual balance owed.
Consumers who leased vehicles from Ford Credit between 1991 and 1994 will be directly notified. Those who leased a vehicle from participating Ford and Mercury dealers from 1995 through June 10, 2004 may also quality.
Those consumers must call the settlement administration at 800-221-3312.