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Auto dealer settles DOJ allegations over handling of servicemembers’ vehicle leases

August 13, 2026

On July 30, the DOJ announced that a “lease here, pay here” auto dealership agreed to pay over $137,000 in a settlement to resolve allegations that it violated the SCRA in its handling of servicemembers’ vehicle leases. The DOJ alleged that from January 2020 to at least December 2025, the dealership illegally repossessed three servicemembers’ vehicles without court orders, with at least one repossession occurring after the servicemember purportedly submitted a copy of their military orders. The company also allegedly failed to refund lease amounts and security deposits when servicemembers terminated vehicle leases early after receiving their military orders. According to the agreement, the auto dealership will pay $77,348 in compensation to the affected servicemembers, a $60,000 civil penalty and will be required to adopt SCRA policies, procedures and training.