Soldier’s Deployment Didn’t Stop Dealer From Illegally Repossessing Her Car — Now It’s Paying $137K

A Mississippi-based dealership chain, Holmes Motors, has agreed to pay $137,348 to resolve allegations that it illegally repossessed vehicles from active-duty servicemembers and failed to refund security deposits and prepaid lease amounts after early terminations. The settlement stems from violations of the Servicemembers Civil Relief Act (SCRA), which prohibits lenders from repossessing a servicemember’s vehicle without a court order. According to the U.S. Department of Justice, Holmes Motors allegedly repossessed at least three vehicles from servicemembers without obtaining the required legal permission, including one case where a soldier provided deployment orders before her vehicle was taken. The Justice Department also accused the dealership of failing to refund security deposits and prepaid lease amounts to five servicemembers who terminated their leases early due to qualifying military orders. Holmes Motors, which operates in Mississippi, Alabama, and Georgia, has agreed to pay $77,348 in compensation to affected servicemembers, a $60,000 civil penalty, and implement mandatory policy and training changes to prevent future violations. The settlement was reached without Holmes Motors admitting liability, and the claims were not litigated. U.S. Attorney Phillip W. Williams Jr. of the Northern District of Alabama emphasized the importance of protecting servicemembers’ rights, stating that the law is clear: active-duty personnel should not have to worry about their vehicles being repossessed while they serve the country.