On February 2, 2023, the U.S. Department of Justice (“DOJ”) filed a complaint against the City of El Paso, Texas (the “City”) and several co-defendants alleging violations of the Servicemembers Civil Relief Act (“SCRA”) for auctioning off at least 176 motor-vehicles owned by SCRA-protected servicemembers. According to DOJ, the actions taken by the City constitute enforcement of liens on the property or effects of servicemembers, which is prohibited under the SCRA without first obtaining a court order. … Continue Reading
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DOJ files lawsuit alleging SCRA violations for unlawfully auctioning servicemembers’ vehicles
By Michael Fausey on
On April 15, 2022, the U.S. Department of Justice filed a lawsuit against Steve’s Towing, Inc., located in Virginia Beach, Virginia, pursuant to the Servicemembers Civil Relief Act (“SCRA”), 50 U.S.C. §§ 3901-4043, for alleged violations of the SCRA’s prohibition against enforcing a storage lien on a servicemember’s vehicle during, or within ninety days after, a period of military service without a court order. … Continue Reading
NY enacts new disclosure requirements for use of auto “kill switches”
By Alan S. Kaplinsky on
New York has enacted legislation that requires creditors to provide new disclosures when using devices to remotely disable vehicles, commonly referred to as “kill switches.” The new law took effect immediately upon its signing by Governor Cuomo on October 2, 2018.
First, the law amended New York’s Uniform Commercial Code to add a definition for a “payment assurance device.” … Continue Reading