Federal officials accused CarMax of violating the Servicemembers Civil Relief Act (SCRA) by seizing vehicles owned by members of the armed forces without first obtaining court approval.
"Federal law prohibits businesses from repossessing service members’ vehicles without a court order," Assistant Attorney General Harmeet K. Dhillon said. "The Department of Justice is proud to defend the rights of those who serve in our military and will continue to vigorously enforce the laws that protect them."
between March 1, 2018, and at least Oct. 24, 2023, affecting at least 28 service members. Each is entitled to a minimum payment of $15,000, plus lost equity in the vehicle and interest on that amount.
In addition to compensating affected service members, the company will pay a $79,380 civil penalty to the U.S., according to the DOJ.
CarMax – which did not admit or deny the allegations – agreed to revise its policies and procedures to better protect the rights of U.S. service members.
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