A Mississippi-based car dealership has agreed to pay a significant sum to resolve allegations that it illegally repossessed vehicles from active-duty servicemembers.
Holmes Motors, which operates in Mississippi, Alabama, and Georgia, will pay $77,348 in compensation to affected servicemembers, according to the U.
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S. Department of Justice.
The dealership also faces a $60,000 civil penalty and must implement policy and training changes to prevent future violations.
Allegations of Unlawful Repossessions
The Justice Department alleged that Holmes Motors repossessed three vehicles from active servicemembers without obtaining the required court orders, violating the Servicemembers Civil Relief Act (SCRA).
In one case, the dealership allegedly repossessed a vehicle even after the servicemember provided a copy of military orders requiring her to deploy to operations at the Mexican border.
Additionally, the dealership failed to refund security deposits and prepaid lease amounts after five vehicle leases were terminated early by servicemembers who had received qualifying military orders.
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Holmes Motors resolved the matter without admitting liability, and the claims were never litigated.
U. S.
Attorney Phillip W. Williams Jr. from the Northern District of Alabama emphasized the importance of protecting servicemembers' rights.
“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,” Williams said.
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“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,” he added.
