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Hudson Valley Credit Union Illegally Repossesses Servicemembers’ Cars
A federal investigation has uncovered a scheme by Hudson Valley Federal Credit Union to illegally repossess the vehicles of seven servicemembers without first obtaining the required court orders, violating the Servicemembers Civil Relief Act (SCRA).
Under the terms of a settlement, Hudson Valley will pay $95,000 to resolve the allegations. The credit union will pay $65,000 in compensation to the affected servicemembers and a $30,000 civil penalty to the United States.
The investigation, launched by the Civil Rights Division’s Housing and Civil Enforcement Section and the U.S. Attorney’s Office for the Southern District of New York, was sparked by two private lawsuits filed against the credit union.
Hudson Valley, headquartered in Poughkeepsie, New York, is one of the largest credit unions in the country. ‘Financial institutions must recognize and honor their responsibilities to our men and women in uniform,’ said Acting Assistant Attorney General John Gore.
The settlement requires Hudson Valley to provide compensation to each of the affected servicemembers, including up to $10,000 in compensation, plus any lost equity in the vehicle with interest, and steps to repair the credit of the affected servicemembers.
The agreement resolves the claims and causes of action asserted in the United States’ Complaint against Hudson Valley filed in the United States District Court for the Southern District of New York.
Since 2011, the government has obtained over $467 million in monetary relief for servicemembers through its enforcement of the SCRA.
Servicemembers and their dependents who believe that their rights under SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office.
Key Facts
- State: Federal
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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