SAN ANTONIO \u2013 A North Side towing company agreed to pay a six-figure settlement to military servicemembers on Thursday for allegedly illegally scraping and selling parts of their cars dating back to 2020, the U.S. Department of Justice confirmed in a news release.<\/p>\n
Vehicle Management Solutions (VMS) was given 10 days to pay a sum of $280,000 \u201cto resolve allegations that the company illegally sold or scrapped approximately 93 vehicles owned by U.S. servicemembers in violation of the Servicemembers Civil Relief Act (SCRA),\u201d the release stated.<\/p>\n
The SCRA is a program created to protect military members by limiting or pausing financial and civil obligations during military service, according to the Consumer Financial Protection Bureau<\/a>.<\/p>\n \u201cThe law prohibits a towing company from selling a vehicle owned by an SCRA-protected servicemember unless the company first obtains a court order authorizing the sale,\u201d the release said.<\/p>\n According to the settlement document, VMS agreed to pay:<\/p>\n $200,000 to servicemembers affected by the damage<\/p>\n $60,000 to the United States Treasury as a civil penalty pursuant<\/p>\n $20,000 to Sergeant Jeremy Cortez <\/p>\n Additionally, VMS agreed to update its policy and training to help avoid future SCRA violations. <\/p>\n The DOJ began its investigation into the Military City-based tow company in 2024 when a servicemember claimed his vehicle was towed and auctioned while deployed overseas, according to the release.<\/p>\n If a military member\u2019s personal vehicle was auctioned, sold or disposed of by VMS between Aug. 1, 2020 and June 12, 2025, they may be eligible for a monetary award, according to the official settlement document.<\/p>\n Qualified servicemembers also must confirm the damage occurred \u201cwhile you were in military service, after you had received orders to report for military service; or within 90 days after you left military service,\u201d the document stated. <\/p>\n