Holmes Motors to Pay $137,000 for Mishandling Servicemembers' Vehicle Leases
Holmes Motors agreed to settle allegations of unlawful repossessions and failure to refund deposits, paying $77,348 to servicemembers and a $60,000 civil penalty.
Key Takeaways
- Holmes Motors agreed to settle allegations of unlawful repossessions and failure to refund deposits.
- The dealership will pay $77,348 to affected servicemembers and a $60,000 civil penalty.
- One servicemember’s vehicle was allegedly repossessed after providing deployment documents.
- Holmes Motors must make policy and training changes to prevent future violations.
- The settlement resolves allegations without admitting liability.
What Happened?
Holmes Motors, a dealership with locations in Mississippi, Alabama, and Georgia, allegedly repossessed three vehicles from active servicemembers without obtaining court orders, violating the Servicemembers Civil Relief Act (SCRA).
In one case, the dealership repossessed a vehicle after the servicemember provided a copy of military orders requiring her to deploy to operations at the Mexican border.
Why Is This a Problem?
The SCRA protects servicemembers from certain financial burdens, including repossession of vehicles, while they are on active duty.
Holmes Motors’ actions allegedly put servicemembers in a difficult financial situation, contradicting the purpose of the SCRA.
What Does the Settlement Mean?
The settlement requires Holmes Motors to pay $77,348 in compensation to the affected servicemembers and a $60,000 civil penalty.
The dealership must also make policy and training changes to ensure no similar violations occur in the future.
What Do the Authorities Say?
US Attorney Phillip W. Williams Jr. emphasized the importance of protecting servicemembers’ rights, stating that the law is clear and companies must understand that it is not optional.
Frequently Asked Questions
Q: How much will Holmes Motors pay in compensation and penalties?
Holmes Motors will pay $77,348 in compensation to affected servicemembers and a $60,000 civil penalty.
Q: What is the Servicemembers Civil Relief Act (SCRA)?
The SCRA is a law that protects servicemembers from certain financial burdens, including repossession of vehicles, while they are on active duty.
Q: What changes must Holmes Motors make to prevent future violations?
Holmes Motors must make policy and training changes to ensure no similar violations occur in the future.
