CarMax Forced to Pay $420,000 Over Military Repos
Attorneys with the Department of Justice say CarMax has agreed to pay damages totaling $420,000 as well as a civil penalty of $79,380 to settle charges that the used car retailer illegally repossessed vehicles owned by at least 28 U.S. servicemembers over a five-year period.
Each of those repos was executed in violation of the federal Servicemembers Civil Relief Act, says Assistant Attorney General Harmeet K. Dhillon in a release.
“Federal law prohibits businesses from repossessing service members’ vehicles without a court order,” Dhillon writes. “The Department of Justice is proud to defend the rights of those who serve in our military and will continue to vigorously enforce the laws that protect them.”
Each of the affected soldiers, sailors and Marines will receive $15,000 and compensation for lost equity and interest. CarMax was not required to admit fault to secure the settlement but did agree to revise its policies and procedures, according to the release.
