San Diego County News
  • Home
  • National
  • Lifestyle
    • Culture
    • Senior Life
  • Local
    • Central San Diego
    • North County
    • East County
    • South Bay
  • Politics
  • Entertainment
    • Art
    • Books
    • Film
    • Museum
    • Music
    • Television
    • Theater
    • Theme Parks
    • Pop Culture
  • Community Events

Select Page

CarMax to pay $500K over illegal servicemember repossessions of vehicles

Posted by SDCN Staff | Feb 26, 2026 | National | 0

CarMax to pay $500K over illegal servicemember repossessions of vehicles

By SDCN Staff

WASHINGTON–The Justice Department announced that it has reached a settlement with CarMax Incorporated, the nation’s largest retailer of used cars, to resolve allegations that CarMax violated the Servicemembers Civil Relief Act by illegally repossessing motor vehicles owned by members of the military.

As part of the settlement, CarMax will pay at least $420,000 in damages to servicemembers and a civil penalty of $79,380 to the United States.

“Federal law prohibits businesses from repossessing service members’ vehicles without a court order,” said Assistant Attorney General Harmeet Dhillon of the Justice Department’s Civil Rights Division. “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.”

The department alleges that CarMax repossessed servicemember vehicles without obtaining court orders as required by federal law, as well as repossessed some vehicles even after owners told CarMax that they were in military service. CarMax also allegedly failed to extend Servicemembers Civil Relief Act protections to reservists who had received orders to report for active duty. In addition to paying a civil penalty and compensation to harmed individuals, CarMax will revise its policies and procedures to ensure that the rights of U.S. servicemembers are protected in the future.

The Servicemembers Civil Relief Act is a federal law that provides legal and financial protections for servicemembers and their families. The law prevents an auto finance or leasing company from repossessing a servicemember’s vehicle without first obtaining a court order, as long as the servicemember made at least one payment on the vehicle before entering military service. For members of a reserve component, the protections begin on the date the member receives orders to military service.

This case was handled by the Civil Rights Division’s Housing and Civil Enforcement Section and the U.S. Attorney’s Office for the Eastern District of Virginia. Since 2011, the Department has obtained over $484 million in monetary relief for over 149,000 servicemembers through its enforcement of the Servicemembers Civil Relief Act.

facebookShare on Facebook
TwitterTweet
FollowFollow us
PinterestSave

Share:

PreviousSan Diego Unified board aligns immigration policies with California
NextTERI to host benefit concert featuring Jason Mraz

About The Author

SDCN Staff

SDCN Staff

Related Posts

CA awards nearly $17 million for Youth Substance Use Prevention

CA awards nearly $17 million for Youth Substance Use Prevention

May 5, 2023

CBP intercepts Giant African Snail at Atlanta International Airport

CBP intercepts Giant African Snail at Atlanta International Airport

November 17, 2022

Organized retail theft ring busted: Four arrested in Southern CA

Organized retail theft ring busted: Four arrested in Southern CA

April 16, 2024

CA issues new dialing requirements for 909 area code

CA issues new dialing requirements for 909 area code

January 8, 2021

Recent Posts

  • Jamul man sentenced to prison for killing his elderly mother
    Jamul man sentenced to prison for killing his elderly mother
    Aug 27, 2026 | East County, Local
  • Skywalker Grill to open at Lucas Museum of Narrative Art 
    Skywalker Grill to open at Lucas Museum of Narrative Art 
    Aug 27, 2026 | Entertainment, Museum
  • Scientists uncover cellular mechanism driving rare childhood dementia and Alzheimer
    Scientists uncover cellular mechanism driving rare childhood dementia and Alzheimer
    Aug 27, 2026 | Health
  • County approves 121 affordable homes in Logan Heights
    County approves 121 affordable homes in Logan Heights
    Aug 27, 2026 | Central San Diego, Local
  • Registrar calls for poll workers for Nov. 3 election
    Registrar calls for poll workers for Nov. 3 election
    Aug 26, 2026 | Central San Diego, Local

Designed by Elegant Themes | Powered by WordPress

  • Contact Us
  • About San Diego County News
  • Terms Of Service