The Justice Department announced today that Teleguam Holdings, LLC (GTA) has agreed to pay $500,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by imposing fees on over 1,300 military servicemembers who terminated their cell phone service contracts because they had received military relocation orders.
“Servicemembers will not be penalized because of their patriotic service to our country,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “We will vigorously prosecute companies that refuse to abide by federal law that protects our great men and women in uniform who actively serve to protect our Nation.”
GTA will pay $450,000 in compensation to servicemembers, including double damages to servicemembers who paid GTA’s early termination charges, and a $50,000 civil penalty; and GTA will revise its policies to ensure that eligible military servicemembers can end their cell phone service contracts without illegal early termination charges.