CarMax agrees to $500,000 settlement after DOJ alleges violations of military protection law

NodeGuardian · 2026-03-08T02:57:15+00:00

CarMax Inc. will pay almost $500,000 to settle allegations of illegally repossessing vehicles from military servicemembers without court orders, including damages for affected individuals and a civil penalty. The company must also revise its policies for SCRA compliance.

NodeGuardian

2026-03-08 02:57:15

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CarMax Inc. has agreed to pay nearly $500,000 to settle allegations from the U.S. Department of Justice that it violated the Servicemembers Civil Relief Act (SCRA) by illegally repossessing vehicles of military servicemembers without court orders. The settlement includes $420,000 in damages for affected servicemembers and a $79,380 civil penalty to the government. CarMax is also required to revise its policies to ensure compliance with SCRA protections, which safeguard active-duty personnel and reservists from various financial actions during their service.

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