Cases
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.
Louis P. Rego v. Maimonides Medical Center
United States v. Guam and Government of Guam Retirement Fund
United States v. Western Rim Investors 2011-4, L.P. (W.D. Tex.)
On September 28, 2020, the United States filed a complaint and a consent order in United States v. Western Rim Investors 2011-4, L.P. , d/b/a The Estates At Briggs Ranch and Western Rim Investors 2011-3, L.P. d/b/a The Mansions At Briggs Ranch (W.D. Tex.). The complaint alleges that two San Antonio-area landlords engaged in a pattern or practice of violating the Servicemembers Civil Relief Act (SCRA) by imposing early termination charges against servicemembers who terminated their residential leases after receiving qualifying military orders and by denying other servicemembers’ requests to terminate pursuant to the SCRA. The consent order requires the defendants to pay over $71,000 to compensate 45 aggrieved servicemembers. Defendants will also pay a civil penalty of $64,715. The consent order has a term of three years. Defendants no longer own, lease or manage rental property; the consent order requires that they establish SCRA-compliant policies, procedures, and obtain training if they reenter that line of business. The court entered the consent order on September 30, 2020.
United States v. United Tows, LLC (N.D. Tex.)
On July 26, 2021, the court entered a consent decree in United States v. United Tows, LLC (N.D. Tex.). The complaint, which was filed on September 28, 2020, alleges that United Tows, a Dallas-based towing company, violated the Servicemembers Civil Relief Act (SCRA), 50 U.S.C. § 3958, when it auctioned, sold or otherwise disposed of vehicles owned by SCRA-protected servicemembers without obtaining court orders. Under the consent decree, United Tows must adopt new policies and implement new training requirements, pay a total of $40,000 to compensate five aggrieved servicemembers, and pay a $10,000 civil penalty to the U.S.
Press Release (9/28/20)
Press Release (7/23/21)
United States v. Conn Credit I, LP (S.D. Tex.)
On January 29, 2021, the court entered a proposed consent order in United States v. Conn Credit I, LP (S.D. Tex.). The complaint, which was filed on September 15, 2020, alleges that the defendants engaged in a pattern or practice of violating the Servicemembers Civil Relief Act (SCRA) by failing to lower the interest rate on consumer retail installment contracts to 6% for at least 184 SCRA-protected servicemembers. The consent order requires Conn Credit to refund all overcharged interest and pay an additional $500 to each servicemember and to pay $50,000 as a civil penalty. The consent order has a term of three years and requires Conn Credit to hire an independent consultant to identify all affected servicemembers.
United States v. ASAP Towing & Storage Company (M.D. Fla.)
On October 15, 2020, the court entered a consent order resolving United States v. ASAP Towing & Storage Company (M.D. Fla.). The complaint, filed on September 10, 2020, alleged that ASAP engaged in a pattern or practice of violating the Servicemembers Civil Relief Act (SCRA) by auctioning, selling or otherwise disposing of 33 vehicles owned by SCRA-protected servicemembers without court orders. The consent order requires ASAP to pay $99,500 to the servicemembers and $20,000 as a civil penalty. The consent order has a term of five years and requires ASAP to use Vehicle Identification Numbers (VINs) to search publicly available databases to check for military status before auctioning off vehicles.
United States v. City of San Antonio (W.D. Tex.)
On September 3, 2020, the United States filed a complaint and a proposed consent order in United States v. City of San Antonio (W.D. Tex.). The complaint alleges that San Antonio engaged in a pattern or practice of violating the Servicemembers Civil Relief Act (SCRA) by auctioning, selling or otherwise disposing of vehicles owned by SCRA-protected servicemembers without court orders. The consent order requires San Antonio to pay $29,000 to a United States Air Force Staff Sergeant and $18,000 to a United States Army Specialist and establish a $150,000 settlement fund to compensate other servicemembers whose SCRA rights may have been violated. San Antonio will also pay a civil penalty of $62,029. The consent order has a term of eighteen months, requires the standard injunctive relief, including changes to policies and training, and provides for a total of $259,000 in monetary damages and civil penalties. The court entered the consent decree on September 17, 2020.