DOJ: Towing company illegally sold or scrapped 93 vehicles owned by US service members in violation SCRA

The Department of Justice says a San Antonio-based tow company will pay $280,000 to resolve allegations they illegally sold or scrapped approximately 93 vehicles owned by U.S. service members in violation of the Servicemembers Civil Relief Act (SCRA).

The backstory:

The DOJ says Management Solutions Inc. (VMS) engaged in a pattern or practice of auctioning or otherwise disposing of vehicles owned by SCRA-protected service members without obtaining the required court orders. 

The DOJ says their investigation began after receiving a complaint from a service member whose vehicle was towed and auctioned by VMS in 2024 while he was  on a deployment in Kosovo.

Under the settlement, VMS will pay $220,000 in compensation to the affected service members as well as pay a $60,000 civil penalty to the U.S. Treasury and will be required to make policy and training changes to avoid committing future violations.

What they're saying:

"When members of our Armed Forces are called to fight for our country, they should not have to return home to find that their car has been illegally sold. Towing companies must comply with federal laws that protect service members or face serious consequences," said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division in a release. "The Department of Justice stands with our men and women in uniform and will vigorously defend their rights under the law." 

What is the Servicemembers Civil Relief Act (SCRA)

The SCRA is a federal law providing comprehensive financial and legal protections to active-duty service members, including activated Reservists and National Guard members. Under the SCRA, members on duty are allowed to postpone or suspend civil obligations, such as high-interest debt, mortgage payments, evictions, and lease terminations.

The law prohibits a towing company from selling a vehicle owned by an SCRA-protected service member unless the company first obtains a court order authorizing the sale. 

By the numbers:

Under the settlement, VMS will pay $220,000 in compensation to the affected service members. VMS will also pay a $60,000 civil penalty to the U.S. Treasury and will be required to make policy and training changes to avoid committing future violations.

Dig deeper:

The Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with U.S. Attorneys’ Offices throughout the country. 

Since 2011, the DOJ has obtained over $489 million in monetary relief for over 152,000 service members through its enforcement of the SCRA. Servicemembers and their dependents who believe that their rights under the SCRA may have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations can be found at legalassistance.law.af.mil.