Hudson Valley Credit Union Settled with DOJ Over SCRA Violations
Hudson Valley Federal Credit Union, headquartered in Poughkeepsie, New York, has agreed to pay $95,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by repossessing vehicles owned by SCRA-protected service members without first obtaining the required court orders.
The settlement, announced by Manhattan U.S. Attorney Geoffrey S. Berman, requires Hudson Valley to pay $65,000 to compensate seven service members whose cars it unlawfully repossessed and will pay a civil penalty of $30,000 to the United States.
The investigation, launched by the Office’s Civil Rights Unit, found that prior to August 2014, Hudson Valley did not have any written policies or procedures that addressed the SCRA’s protections against non-judicial auto repossessions.
Hudson Valley has committed to protecting service members’ rights in the future and has taken steps to repair the credit of the affected service members.
The agreement requires Hudson Valley to provide $10,000 in compensation to each of the six affected service members, plus any lost equity in the vehicle with interest. An additional service member, whose vehicle was repossessed but returned within 24 hours, will receive $5,000.
Hudson Valley Credit Union is one of the largest credit unions in the country and has agreed to take steps to prevent future SCRA violations.
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, said: ‘Protecting service members is a high priority for this Office and the country. We are pleased that Hudson Valley has taken these remedial steps, and this Office will continue to protect the rights of men and women in uniform.’
Acting Assistant Attorney General John Gore said: ‘Financial institutions must recognize and honor their responsibilities to our men and women in uniform. Our nation depends upon the selfless devotion and sacrifice of our service members and we must ensure that they receive all rights and protections afforded to them by law.’
Key Facts
- State: New York
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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