CarMax Settles for $420,000 Amid Allegations of Military Vehicle Repossessions
Former Republican presidential candidate Larry Elder predicts that the Trump administration’s tariffs aren’t going away anytime soon on ‘The Evening Edit.’
The nation’s largest retailer of used cars, CarMax, has agreed to pay at least $420,000 to settle allegations that it unlawfully repossessed vehicles from U.S. service members without obtaining court orders. This announcement was made by the U.S. Department of Justice on Monday.
In addition to compensating the affected service members, CarMax will also pay a civil penalty of $79,380 to the U.S. government, as stated by the DOJ.
Federal officials have accused CarMax of violating the Servicemembers Civil Relief Act (SCRA) by seizing vehicles owned by military personnel without first securing court approval. Assistant Attorney General Harmeet K. Dhillon emphasized, “Federal law prohibits businesses from repossessing service members’ vehicles without a court order. The Department of Justice is proud to defend the rights of those who serve in our military and will continue to vigorously enforce the laws that protect them.”
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Ford Mustangs and other used vehicles for sale are parked in a lot at a CarMax dealership on April 24, 2025 in San Diego, California. (Photo by Kevin Carter/Getty Images / Getty Images)
The alleged violations took place between March 1, 2018, and at least October 24, 2023, impacting a minimum of 28 service members. Each affected individual is entitled to a minimum payment of $15,000, in addition to lost equity in their vehicles and interest on that amount.
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CarMax will pay at least $420,000 and a civil penalty after the DOJ accused the retailer of illegally repossessing vehicles from U.S. servicemembers. (John Moore/Getty Images / Getty Images)
As part of the settlement, CarMax, while not admitting or denying the allegations, has agreed to revise its policies and procedures to enhance the protection of U.S. service members’ rights. FOX Business has reached out to CarMax for further comment.
The SCRA is a federal statute designed to safeguard the legal and financial interests of U.S. service members and their families during active duty. It prohibits auto lenders and leasing companies from repossessing a service member’s vehicle without a court order if the borrower has made at least one payment prior to entering military service. For reservists, these protections commence upon receiving official orders for active duty.
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Service members or their dependents who believe their rights have been violated are encouraged to reach out to their nearest Armed Forces Legal Assistance Program office.
Former Republican presidential candidate Larry Elder predicts that the Trump administration’s tariffs aren’t going away anytime soon on ‘The Evening Edit.’
The nation’s largest retailer of used cars, CarMax, has agreed to pay at least $420,000 to settle allegations that it unlawfully repossessed vehicles from U.S. service members without obtaining court orders. This announcement was made by the U.S. Department of Justice on Monday.
In addition to compensating the affected service members, CarMax will also pay a civil penalty of $79,380 to the U.S. government, as stated by the DOJ.
Federal officials have accused CarMax of violating the Servicemembers Civil Relief Act (SCRA) by seizing vehicles owned by military personnel without first securing court approval. Assistant Attorney General Harmeet K. Dhillon emphasized, “Federal law prohibits businesses from repossessing service members’ vehicles without a court order. The Department of Justice is proud to defend the rights of those who serve in our military and will continue to vigorously enforce the laws that protect them.”
TRUMP DEFENDS TARIFFS, SAYS US HAS BEEN ‘THE KING OF BEING SCREWED’ BY TRADE IMBALANCE
Ford Mustangs and other used vehicles for sale are parked in a lot at a CarMax dealership on April 24, 2025 in San Diego, California. (Photo by Kevin Carter/Getty Images / Getty Images)
The alleged violations took place between March 1, 2018, and at least October 24, 2023, impacting a minimum of 28 service members. Each affected individual is entitled to a minimum payment of $15,000, in addition to lost equity in their vehicles and interest on that amount.
SUPREME COURT DEALS BLOW TO TRUMP’S TRADE AGENDA IN LANDMARK TARIFF CASE
CarMax will pay at least $420,000 and a civil penalty after the DOJ accused the retailer of illegally repossessing vehicles from U.S. servicemembers. (John Moore/Getty Images / Getty Images)
As part of the settlement, CarMax, while not admitting or denying the allegations, has agreed to revise its policies and procedures to enhance the protection of U.S. service members’ rights. FOX Business has reached out to CarMax for further comment.
The SCRA is a federal statute designed to safeguard the legal and financial interests of U.S. service members and their families during active duty. It prohibits auto lenders and leasing companies from repossessing a service member’s vehicle without a court order if the borrower has made at least one payment prior to entering military service. For reservists, these protections commence upon receiving official orders for active duty.
CLICK HERE TO GET FOX BUSINESS ON THE GO
Service members or their dependents who believe their rights have been violated are encouraged to reach out to their nearest Armed Forces Legal Assistance Program office.
