Cases
United States v. Nissan Motor Acceptance Corp. (M.D. Tenn.)
On August 1, 2019, the United States filed a complaint and executed a settlement agreement in United States v. Nissan Motor Acceptance Corp. (M.D. Tenn.). The complaint alleges that Nissan, which provides motor vehicle lending and leasing services, engaged in a pattern or practice of violating Section 3952 of the Servicemembers Civil Relief Act (“SCRA”) by repossessing vehicles owned by 113 protected servicemembers without the required court orders. The complaint also alleges that Nissan engaged in a pattern or practice of violating Section 3955 of the SCRA by failing to refund lease amounts paid in advance in the form of capitalized cost reduction to servicemembers who terminated their leases early following receipt of qualifying military orders. The settlement agreement requires Nissan to pay $2,937,971 in damages to servicemembers and a $62,029 civil penalty to the United States, for a total of $3 million. The agreement also requires Nissan to adopt new polices and training to prevent future violations of the SCRA.
United States v. Shur-Way Moving and Cartage (N.D. Ill.)
On August 2, 2019, the court entered a consent decree resolving United States v. Shur-Way Moving and Cartage (N.D. Ill.). The complaint, filed on July 29, 2019, alleged that Shur-Way violated the Servicemembers Civil Relief Act (SCRA), 50 U.S.C. § 3958, when it auctioned off the contents of an active duty servicemember’s storage unit without a court order. The consent decree requires Shur-Way to pay $20,000 in damages to the servicemember, pay a $10,000 civil penalty, and revise its policies.
United States v. PRG Real Estate Management (E.D. Va.)
On March 14, 2019, the Division and the United States Attorney’s Office filed a complaint in United States v. PRG Real Estate Management (E.D. Va.). On March 15, 2019, the parties entered into a settlement agreement to resolve the case. The complaint alleges that PRG Real Estate Management, a property management company, and related entities, engaged in a pattern or practice of violating the Servicemembers Civil Relief Act (“SCRA”), 50 U.S.C. 3931 and 3955, when they: (1) obtained default judgments against servicemember-tenants without filing an affidavit disclosing the tenant’s military status to the court; and (2) imposed early termination fees on servicemembers who terminated their leases pursuant to military orders. Additional defendants are: Watergate/Treehouse Associates, L.P., Chanticleer Associates, L.P., New Colony Hilton Associates, L.P., Heritage Trace Apartments, LLC, PRG Ashton Creek Associates, LLC and New Hyde Park Associates, LLC. The settlement agreement requires the defendants to pay up to $1,490,000 to compensate 127 servicemembers who had unlawful default judgments entered against them and $34,920 to compensate 10 servicemembers who were charged early lease termination fees in violation of the SCRA. Defendants will also pay a civil penalty of $62,029 to the United States. In addition, the agreement requires credit repair, policy charges and monitoring for SCRA compliance.
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.
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.
United States v. BMW Financial Services (D. N.J.)
On February 22, 2018, the United States filed a complaint and entered into a settlement agreement in United States v. BMW Financial Services (D. N.J.), a Servicemembers Civil Relief Act pattern or practice case that alleges failure to refund pre-paid lease amounts to servicemembers who terminated their motor vehicle leases early after receiving military orders. The settlement agreement requires BMW FS to pay $2,165,518.84 to 492 servicemembers and $60,788 to the United States Treasury. The agreement also includes non-monetary relief, including changes in BMW FS’s lease termination policies to ensure that required refunds are provided, and employee training.
United States v. City and County of Honolulu, PM Autoworks Inc, d/b/a All Island Towing (D. Haw.)
On February 15, 2018, the United States filed a complaint and entered into a settlement agreement in United States v. City and County of Honolulu Autoworks Inc, d/b/a All Island Towing (D. Haw.) resolving allegations that Honolulu and its contracted towing company violated the Servicemembers Civil Relief Act. The complaint alleges that Honolulu and All Island Automotive Towing violated the Servicemembers Civil Relief Act by auctioning or otherwise disposing of cars owned by protected servicemembers without first obtaining the required court orders. The settlement agreement requires Honolulu to adopt new SCRA-compliant procedures, compensate three servicemembers a total of $55,857.95 for unlawfully auctioning off their cars and personal effects while they were deployed, establish a $150,000 settlement fund to compensate other servicemembers whose rights may have been violated, and pay a $60,788 civil penalty to the United States.
United States v. Northwest Trustee Services, Inc. (W.D. Wash.)
On September 26, 2018, the United States entered into a settlement agreement resolving the allegations in United States v. Northwest Trustee Services, Inc. (W.D. Wash.). The complaint, which was filed on November 9, 2017, and amended on January 8, 2018, alleged that a company that provided foreclosure services to mortgage lenders in the Western United States violated the Servicemembers Civil Relief Act by foreclosing on 28 homes owned by protected servicemembers without first obtaining the required court orders. The settlement agreement requires Northwest Trustee, which has gone out of business and is in state receivership proceedings, to pay up to $750,000 to the aggrieved servicemembers.