- Holmes Motors agreed to settle allegations over unlawful repossessions.
- More than $77,000 will be paid to affected servicemembers under the settlement.
- One vehicle was allegedly repossessed after deployment documents were provided.
Yet another US car dealership will pay a substantial sum to resolve allegations that it illegally repossessed vehicles owned by servicemembers. Not only that, but the dealer is also alleged to have failed to refund security deposits and prepaid lease amounts to servicemembers who had to terminate leases in order to serve the country.
The dealership, Holmes Motors, which operates in Mississippi, Alabama, and Georgia, allegedly repossessed three vehicles from active servicemembers without obtaining court orders. Under the Servicemembers Civil Relief Act (SCRA), a servicemember’s vehicle cannot lawfully be repossessed without an appropriate court order.
Read: CarMax Must Pay $15,000 For Every Car It Illegally Repossessed From American Troops
According to the US Department of Justice, In one case, it’s claimed the dealership proceeded to repossess a vehicle even after the servicemember provided a copy of military orders, requiring her to be deployed to operations at the Mexican border. The Justice Department also asserted that Holmes Motors had failed to refund security deposits and prepaid lease amounts after five vehicle leases were terminated early by servicemembers who had also received qualifying military orders.
According to the US Department of Justice, in one instance the dealership is claimed to have repossessed a vehicle even after the servicemember provided a copy of military orders requiring her to deploy to operations at the Mexican border. The Justice Department also alleges that Holmes Motors failed to refund security deposits and prepaid lease amounts after five vehicle leases were terminated early by servicemembers who had received qualifying military orders.
As is typical in these cases, Holmes Motors resolved the matter without admitting liability, and the claims were never litigated.
Fighting For Those Who Serve
“As someone with 30 years of military service, enforcing the law to protect servicemembers’ rights is of the highest priority to me and to my office,” US Attorney Phillip W. Williams Jr. from the Northern District of Alabama said. “The law is clear that when servicemembers are on active duty, they should not have to worry their car will be repossessed while they serve their country. I am very proud of this settlement, which ensures that companies understand that this law is not optional and servicemembers’ rights will be protected in this district.”
Holmes Motors has agreed to pay $77,348 in compensation to the servicemembers to settle the allegations. It must also pay a $60,000 civil penalty and must make policy and training changes to ensure no similar violations occur in the future.
