The Justice Department today announced that San Antonio-based tow company Vehicle Management Solutions Inc. (VMS) will pay $280,000 to resolve allegations that the company illegally sold or scrapped approximately 93 vehicles owned by U.S. servicemembers in violation of the Servicemembers Civil Relief Act (SCRA).
“When members of our Armed Forces are called to fight for our country, they should not have to return home to find that their car has been illegally sold. Towing companies must comply with federal laws that protect servicemembers or face serious consequences,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “The Department of Justice stands with our men and women in uniform and will vigorously defend their rights under the law.”
“The Western District of Texas is proud to be home to countless military members and their families, as well as many veterans of our Armed Forces. Deploying is hard enough. Worrying about the safety and security of one’s personal property while deployed is a concern no member of our military should carry,” said U.S. Attorney Justin R. Simmons for the Western District of Texas. “In the Western District of Texas, we will always fight for those that fight for us, both while they are home and while serving our country overseas. This case is an example of our resolve and commitment to that mission.”
The Department alleges that VMS engaged in a pattern or practice of auctioning or otherwise disposing of vehicles owned by SCRA-protected servicemembers without obtaining the required court orders. The Department began investigating VMS after receiving a complaint from a servicemember whose vehicle was towed and auctioned by VMS in 2024 while he was serving on an overseas deployment in Kosovo.
The SCRA is a federal law that provides a variety of financial and housing protections to members of the U.S. military. The law prohibits a towing company from selling a vehicle owned by an SCRA-protected servicemember unless the company first obtains a court order authorizing the sale.
Under the settlement, VMS will pay $220,000 in compensation to the affected servicemembers. VMS will also pay a $60,000 civil penalty to the U.S. Treasury and will be required to make policy and training changes to avoid committing future violations.