The Department of Justice recently entered into a settlement with BayPort Credit Union to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by charging unlawful interest to servicemembers and repossessing vehicles owned by servicemembers without first obtaining the required court orders. As detailed below, the consent order requires BayPort to pay compensation
repossession
CFPB issues compliance bulletin on auto repossession
By John L. Culhane, Jr. on
In a move intended “to thwart illegal repossessions in the heated auto market,” the CFPB has issued a compliance bulletin that describes conduct related to repossession that it has found to be an unfair, deceptive, or abusive act or practice (UDAAP) and sets forth the Bureau’s expectations for actions entities should take to…
Justice Dept. Obtains $80,000 Consent Order with California Auto Lender, Including Record Payment of $30,000 to One Individual Servicemember, for Improper Repossession of Servicemember Vehicles
By Rachel R. Mentz on
Posted in Military Issues, Regulatory and Enforcement
On March 6, 2019, a California subprime auto lender, California Auto Finance, agreed to enter into a consent order with the Justice Department related to allegations that it repossessed vehicles in violation of the Servicemembers Civil Relief Act (SCRA). Under the terms of the consent order, which is still subject to court approval, California…
DOJ enters into settlement with credit union to resolve alleged SCRA violations in connection with vehicle repossessions
By John L. Culhane, Jr. on
Posted in Military Issues, Regulatory and Enforcement
The Department of Justice recently entered into a settlement with Hudson Valley Federal Credit Union to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by repossessing vehicles owned by servicemembers without first obtaining the required court orders. The settlement agreement requires Hudson Valley to pay $65,000 to compensate seven servicemembers whose vehicles…