Cases
United States v. PHH Mortgage Corp. (D. N.J.)
On February 6, 2019, the United States filed a complaint and entered into a settlement agreement resolving United States v. PHH Mortgage Corp. (D. N.J.). The complaint alleged that PHH, one of the nation’s largest mortgage servicers, engaged in violations of the Servicemembers Civil Relief Act (“SCRA”), 50 U.S.C. § 3953, that raise issues of significant public importance when it foreclosed on homes owned by six servicemembers without the required court orders. The settlement agreement requires PHH to pay $750,000 in damages to the servicemembers ($125,000 per servicemember). The agreement also requires monitoring for SCRA compliance.
United States v. Hudson Valley Federal Credit Union (S.D.N.Y.)
On November 2, 2018, the United States filed a complaint and entered into a settlement agreement resolving United States v. Hudson Valley Federal Credit Union (S.D.N.Y.). The complaint alleged that the credit union violated the Servicemembers Civil Relief Act by repossessing protected servicemembers’ motor vehicles without obtaining the necessary court orders. The settlement agreement requires Hudson Valley to provide $10,000 in compensation to each of six servicemembers whose motor vehicles COPOCO unlawfully repossessed and $5,000 to one servicemember who faced an unlawful repossession but had his vehicle returned within 24 hours. The settlement agreement also requires Hudson Valley to provide SCRA training to its employees, report to the United States on any SCRA complaints received, and pay a civil penalty of $30,000.
United States v. United Communities, LLC (D. N.J.)
On September 27, 2018, the United States filed a complaint and entered into a settlement agreement in United States v. United Communities, LLC (D. N.J.). The complaint alleges that United Communities, which provides on-base military housing at Joint Base McGuire-Dix-Lakehurst in New Jersey, engaged in a pattern or practice of violating the Servicemembers Civil Relief Act (“SCRA”), 50 U.S.C. § 3955, by imposing lease termination charges against 13 servicemembers who had properly terminated their residential leases under the SCRA. Specifically, United Communities was requiring servicemembers who terminated their leases early following receipt of Permanent Change of Station or deployment orders to repay rent concessions they had received for prior months. The settlement agreement requires United Communities to pay $45,001.78 in damages to 13 servicemembers and a $17,500 civil penalty to the United States. The agreement also requires United Communities to adopt new polices and training to prevent future violations of the SCRA.
United States v. Twin Creek Apartments, LLC d/b/a/ Pavilion at Twin Creek (D. Neb.)
On September 11, 2018, the United States filed a complaint and entered into a settlement agreement in United States v. Twin Creek Apartments, LLC d/b/a/ Pavilion at Twin Creek (D. Neb.). The complaint alleges that Twin Creek engaged in a pattern or practice of violating the Servicemembers Civil Relief Act (“SCRA”), 50 U.S.C. 3955, by imposing lease termination charges against 65 servicemembers who had properly terminated their residential leases under the SCRA. The settlement agreement requires Twin Creek to pay $75,615 in damages to 65 servicemembers and a $20,000 civil penalty to the United States. The agreement also requires Twin Creek to adopt new polices to prevent future violations of the SCRA.
Larry Green v. Watermark Solutions
Dwayne Coffer v. Warren County Board of Education
Lindsey Hunger v. Walmart Inc.
Louis P. Rego v. Maimonides Medical Center
United States v. Belshaw (C.D. Cal.)
On April 11, 2018, the United States entered into a settlement agreement resolving United States v. Belshaw (C.D. Cal.). The complaint, which was filed on April 10, 2018, alleged that a California landlord violated the Servicemembers Civil Relief Act ( SCRA) when he refused to return pet and key deposits to a United States Air Force Lieutenant after he lawfully terminated his lease prior to move-in upon receipt of military orders requiring him to relocate to Texas. Under the settlement agreement, Daniel Belshaw must pay $2,595 in damages to the servicemember, pay a civil penalty of $1,595 to the United States, adopt lease language that complies with the SCRA, report to the United States on SCRA compliance, and refrain from engaging in future SCRA violations. The case was primarily handled by the United States Attorney’s Office.
Press Release (4/11/18)
United States v. California Auto Finance (C.D. Cal.)
On March 6, 2019, the Division, together with the United States Attorney’s Office, filed a proposed consent decree in United States v. California Auto Finance (C.D. Cal.). The complaint, filed on March 28, 2018, alleged that Defendant California Auto Finance, a subprime auto lender in Orange County, CA, violated the Servicemember Civil Relief Act (SCRA) by repossessing protected servicemembers’ motor vehicles without obtaining the necessary court orders. On June 14, 2018, the complaint was amended to include a related entity called 3rd Generation, Inc. as a defendant. The consent order requires that the defendants adopt new repossession policies, pay one servicemember $30,000, and pay a $50,000 civil penalty to the United States.