The Department of Justice has settled with CarMax over allegations that the company illegally repossessed vehicles belonging to servicemembers, violating the Servicemembers Civil Relief Act (SCRA). CarMax will pay at least $420,000 in damages to affected servicemembers and a civil penalty of $79,380 to the United States. Additionally, CarMax plans to revise its policies and procedures to ensure future compliance with the SCRA.
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DOJ reaches settlement with CarMax over illegal repossession of servicemembers' vehicles
The Department of Justice has settled with CarMax over allegations that the company illegally repossessed vehicles belonging to servicemembers, violating the Servicemembers Civil Relief Act (SCRA). CarMax will pay at least $420,000 in damages to affected servicemembers and a civil penalty of $79,380 to the United States. Additionally, CarMax plans to revise its policies and procedures to ensure future compliance with the SCRA.