The Justice Department announced that Holmes Motors Inc., a multi-state ‘lease here, pay here’ dealership, has agreed to pay $137,000 to resolve allegations of violating the Servicemembers Civil Relief Act (SCRA). The settlement addresses claims the company illegally repossessed vehicles from servicemembers without court orders and failed to refund security deposits or prepaid lease amounts when leases were terminated due to military orders. Under the agreement, Holmes Motors will pay $77,348 in compensation to affected servicemembers, a $60,000 civil penalty, and implement policy and training changes. The DOJ alleges the company repossessed three vehicles, including one after a servicemember provided military deployment orders. Since 2011, the department has secured over $489 million in relief for more than 152,000 servicemembers through SCRA enforcement. Affected servicemembers are urged to contact the Armed Forces Legal Assistance Program for further information.
Source: U.S. Department of Justice (DOJ).
Materials reproduced from https://www.justice.gov/.
No endorsement by the DOJ is implied.
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