In a decisive move, the U.S.. Department of Justice secured a settlement with San Antonio towing firm Vehicle Management Solutions Inc. (VMS) after it illegally sold or scrapped 93 vehicles owned by active‑duty service members, Reservists, and National Guard members.. The company will pay $220,000 in compensation to affected personnel, a $60,000 civil penalty to the Treasury, and revise its policies to ensure future compliance.

93 Military Vehicles Sold Without Court Orders

According to the DOJ, VMS sold or scrapped approximately 93 vehicles belonging to protected service members without obtaining the required court order under the Servicemembers Civil Relief Act (SCRA). The investigation was triggered by a complaint from a service member whose car was auctioned in 2024 while he was deployed in Kosovo .

$280,000 Settlement Breaks Down: $220,000 Compensation, $60,000 Penalty

The settlement requires VMS to pay $220,000 in restitution to the affected service members and a $60,000 civil penalty to the U.S. Treasury.. The firm must also implement policy and training reforms to prevent future violations, a move the DOJ’s Assistant Attorney General Harmeet K . Dhillon said will protect service members from similar abuses.

DOJ’s Long‑Standing SCRA Enforcement Track Record

As reported by the DOJ,the Civil Rights Division’s Housing and Civil Enforcement Section has recovered more than $489 million for over 152,000 service members since 2011 through SCRA enforcement.. this case underscores the agency’s ongoing commitment to safeguarding the financial and legal interests of those in uniform.

Who Should Seek Legal Recourse?

Service members who believe their SCRA rights have been violated are encouraged to contact the Armed Forces Legal Assistance Program Office. the DOJ’s action demonstrates that violations will be met with significant penalties and mandatory reforms.