US Justice Department Reaches Settlement with CarMax Over Military Vehicle Repossessions
CarMax will pay $420,000+ to servicemembers and a penalty fee for illegally repossessing their vehicles, violating the SCRA.Summary
The U.S. Justice Department reached a settlement with CarMax Inc. over allegations of illegally repossessing vehicles from members of the U.S. military, violating the Servicemembers Civil Relief Act (SCRA). CarMax will pay at least $420,000 in compensation to affected servicemembers and a $79,380 civil penalty. The Justice Department alleged that CarMax repossessed vehicles without required court orders, even after being notified of the owners’ military service, and failed to protect reservists reporting for active duty.
The SCRA protects military members from financial and legal pressures during service, prohibiting vehicle repossession without a court order if at least one payment has been made. CarMax has committed to revising its policies to ensure future compliance. This settlement is part of a broader DOJ effort that has secured over $484 million in relief for more than 149,000 servicemembers since 2011.
The case underscores the importance of protecting the property rights of military families facing unique challenges due to deployment and relocation. Affected servicemembers are encouraged to verify their eligibility for compensation and contact the Armed Forces Legal Assistance Program Office for assistance.
(Source：Event Coverage)