A San Antonio towing company agreed to pay a $280,000 settlement to U.S. military personnel after illegally selling or scrapping at least 93 of their vehicles, Justice Department officials said Thursday.
The government has given Vehicle Management Solutions 10 days to come up with the penalty, which Justice Department officials said they imposed because the company violated the Servicemembers Civil Relief Act (SCRA). That federal law ensures that members of the U.S. military can pause or reduce certain civil obligations so they can carry out their duties without being thrown into financial ruin.
Under law, towing firms are prohibited from selling vehicles owned by an SCRA-protected servicemembers unless the business first obtains a court order authorizing the sale.
“When members of our Armed Forces are called to fight for our country, they should not have to return home to find that their car has been illegally sold,” Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division said in a statement. “Towing companies must comply with federal laws that protect servicemembers or face serious consequences.”
Federal authorities began investigating Vehicle Management Solutions after being contacted by a servicemember who complained that the company towed and auctioned his car in 2024 while he was deployed to Kosovo, Justice Department officials said.
Under the settlement, Vehicle Management Solutions will pay $220,000 in compensation to affected military personnel. The business also will also fork over a $60,000 civil penalty and be required to make policy and training changes to avoid future SCRA violations.
Servicemembers and dependents who think their SCRA rights may have been violated should contact the nearest Armed Forces Legal Assistance Program Office, according to the Justice Department. Office locations can be found on the program’s website.
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