DOJ Secures Additional $5.4 Million from Bank for Alleged Unlawful Repossessions of Servicemembers’ Automobiles

Auto Finance  •  DOJ  •  SCRA

On November 14, the U.S. Department of Justice (“DOJ”) announced that it obtained from a national bank an additional $5.4 million in relief for servicemembers based on the bank’s allegedly unlawful repossession of automobiles in violation of the Servicemembers Civil Relief Act.

This relief is in addition to the relief the DOJ obtained from the bank when it initially settled with the DOJ in September of 2016 (covered by Enforcement Watch here), and is based on newly identified violations from the time period covered by the settlement, affecting approximately 450 servicemembers.  The 2016 settlement resolved claims that the bank had failed to obtain court orders prior to repossessing vehicles owned by consumers protected by the SCRA by virtue of their active-duty military status.  Combined with the compensation previously announced, the borrowers are eligible to receive a total of approximately $10.1 million.

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