Cases
United States v. City of El Paso, Texas, et al. (W.D. Tex.)
On February 2, 2023, the Division filed a complaint alleging that the City of El Paso and its contractors, United Road Towing, Inc. d/b/a UR Vehicle Management Solutions and Rod Robertson Enterprises, Inc., engaged in a pattern or practice of violating Section 3958 of the Servicemembers Civil Relief Act (SCRA) by auctioning off at least 176 vehicles owned by protected servicemembers without the required court orders. On May 7, 2024, the Division filed a proposed consent order with United Road Towing, Inc., one of the three Defendants in United States v. City of El Paso, Texas, et al. (W.D. Tex.). The consent order, which still must be approved by the court, requires United Row Towing, Inc. to develop policies and procedures that comply with Section 3958; provide SCRA compliance training to key employees; deposit $57,935 into a Settlement Fund to compensate affected servicemembers; and pay a civil penalty of $24,980. On August 1, 2024, the Division filed a proposed consent order with Rod Robertson Enterprises, Inc., requiring it to establish a $140,000 settlement fund to compensate the affected servicemembers and pay a $20,000 civil penalty. On August 1, 2024, the Division also filed a proposed consent order with the City of El Paso, requiring it to develop new policies and procedures to ensure that its contractors that are responsible for auctioning or otherwise disposing of impounded vehicles comply with the SCRA in the future and pay a $20,000 civil penalty.
United States v. AmeriCredit Financial Services, Inc. dba GM Financial (N.D. Tex.)
On September 30, 2022, the United States filed a complaint and a proposed consent order in United States v. AmeriCredit Financial Services, Inc. dba GM Financial (N.D. Tex.). The complaint alleges that GM Financial violated the Servicemembers Civil Relief Act (SCRA) by illegally repossessing 71 servicemembers’ vehicles and by improperly denying or mishandling over 1,000 vehicle lease termination requests. The amended consent order, which the court entered on October 4, 2022, requires GM Financial to pay $3,534,171 to the affected servicemembers and a $65,480 civil penalty to the United States. The order also requires GM Financial to repair the servicemembers’ credit, provide SCRA training to its employees, and follow policies and procedures that comply with the SCRA.
Press Release (9/30/22)
United States v. Integrity Asset Management LLC (W.D. Tex.)
On September 2, 2022, the court entered a consent order in United States vs. Integrity Asset Management, LLC (W.D. Tex.). The complaint, which was filed on August 19, 2022, alleged that the defendant, a company that manages approximately 55 multi-family apartment properties in and around El Paso, Texas, violated the Servicemembers Civil Relief Act (SCRA) by charging unlawful fees to servicemembers who terminated their residential leases early and by denying other servicemembers’ requests to terminate their leases. The consent order requires the defendant to pay a total of $107,000 in monetary relief: $45,325 to affected servicemembers and a $62,029 civil penalty to the United States. The order also requires the defendant to repair the servicemembers’ credit, provide SCRA training to its employees, and develop new policies and procedures consistent with the SCRA.
Press Release (8/18/2022)
United States v. Illinois Department of Corrections
United States vs. Chesapeake Coveside Lane Apartments Property Owner, LLC, et al. (E.D. Va.)
On September 14, 2022, the court entered a consent order in United States vs. Chesapeake Coveside Lane Apartments Property Owner, LLC, et al. (E.D. Va.). The complaint, which was filed on August 8, 2022, alleges that the defendants violated the Servicemembers Civil Relief Act (SCRA) by obtaining unlawful court judgments against military tenants at the Hideaway at Greenbrier Luxury Apartment Homes in Chesapeake, Virginia, and the Chase Arbor Apartments in Virginia Beach, Virginia. Chesapeake Coveside Lane Apartments Property Owner, LLC and Chase Arbor Apartments Property Owner, LLC are both named as defendants in the case. The consent order requires the defendants to pay a total of $225,000 in monetary relief: $162,971 to affected servicemembers and a $62,029 civil penalty to the United States. The order also requires the defendants to vacate the judgments, repair the servicemembers’ credit, provide SCRA training to their employees, and develop new policies and procedures consistent with the SCRA. The owners must also reimburse affected servicemembers for any amounts collected pursuant to an unlawful judgment.
United States v. Prince George County, Virginia
United States v. Steve's Towing, Inc. (E.D. Va.)
On April 17, 2023, the court entered a consent order in United States & John Doe v. Steve’s Towing, Inc. (E.D. Va.). The complaint, which was filed on April 15, 2022, alleges that a Virginia Beach towing company violated the Servicemembers Civil Relief Act (SCRA) by auctioning off vehicles belonging to at least seven servicemembers without first obtaining the required court orders. Some of the vehicles were towed from a military base while their owners were deployed overseas. In addition to requiring the adoption of new policies to prevent future SCRA violations, the consent order orders the defendant to pay a total of $90,000 in monetary relief: $67,500 in damages to identified servicemembers; up to $12,500 for as-yet unidentified servicemembers; and a $10,000 civil penalty.
United States v. Bayport Credit Union (E.D. Va.)
On March 18, 2022 the court entered a consent order in United States v. BayPort Credit Union (E.D. Va.). The complaint, which was filed on March 10, 2022, alleges that a credit union failed to cap servicemembers’ interest rates for pre-service loans at 6% and repossessed servicemembers’ motor vehicles without the required court orders. The consent order requires BayPort to pay $69,443.10 to 24 servicemembers and pay a $40,000 civil penalty. The agreement also includes changes in BayPort’s SCRA interest rate benefit and repossession policies and employee training.
Press Release - (03/18/2022)
United States v. Santander Consumer USA, Inc. d/b/a Chrysler Capital (N.D. Tex.)
On October 1, 2021, the court entered a consent order in United States v. Santander Consumer USA, Inc. d/b/a Chrysler Capital (N.D. Tex.). The complaint, filed on September 30, 2021, alleged that Defendant Santander Consumer USA, Inc. d/b/a Chrysler Capital violated the Servicemembers Civil Relief Act (SCRA), by unlawfully rejecting ten (10) requests from qualified servicemembers to terminate their motor vehicle leases early. The consent order require Defendant provide for changes to procedures and training, $94,282.62 in compensation for ten servicemembers, and a $40,000 civil penalty.
United States v. American Honda Finance Corporation (C.D. Cal.)
On October 6, 2021, the court entered a consent order in United States v. American Honda Finance Corporation (C.D. Cal.). The complaint, which was filed along with the proposed consent order on September 29, 2021, alleged that American Honda Finance Corporation violated the Servicemembers Civil Relief Act (SCRA) by failing to refund pre-paid lease amounts - in the form of capitalized cost reduction (“CCR”) from vehicle trade-in value – that were paid in advance by servicemembers who lawfully terminated their motor vehicle leases upon receipt of qualifying military orders. The consent order requires Honda to pay $1,585,803.89 to 714 servicemembers, pay a $64,715 civil penalty to the United States, make changes to its lease termination and SCRA interest rate benefit policies, and provide employee training.
United States v. New Jersey Higher Ed. (D. N.J.)
On October 21, 2021, the court entered a consent decree in United States v. New Jersey Higher Ed. (D. N.J.). The complaint, which was filed on September 20, 2021, alleges that the New Jersey Higher Education Student Assistance Authority violated the Servicemembers Civil Relief Act (“SCRA”) when it obtained improper student loan default judgments against two active duty servicemembers by filing affidavits with the court stating that the servicemembers were not in military service when they were, in fact, in military service. The consent decree requires the state agency to pay $15,000 in damages to the each of the two servicemembers and a $20,000 civil penalty (total of $50,000), in addition to adopting various policy changes to prevent future SCRA violations.
United States v. Black and White Garage, Inc. d/b/a Black and White Towing, Inc. (C.D. Cal.)
On August 9, 2021, the court entered a consent order in United States v. Black and White Garage, Inc. dba Black and White Towing (C.D. Cal.). The complaint, which was filed on July 20, 2021, alleges that a towing company violated the Servicemembers Civil Relief Act (SCRA) by illegally auctioning off a vehicle belonging to an active duty U.S. Marine. Under the consent decree, Black and White must adopt new policies and implement new training requirements, pay $22,000 in compensation to the Marine, and pay a $5,000 civil penalty to the U.S. Treasury.