Sunday, November 4, 2018

Hudson Valley FCU to Pay $95,000 for Illegally Repossessing Servicemembers' Vehicles

Hudson Valley Federal Credit Union (Poughkeepsie, NY) has agreed to pay $95,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by repossessing vehicles owned by seven SCRA-protected service members without first obtaining the required court orders.

An investigation found that prior to August 2014, Hudson Valley FCU did not have any written policies or procedures that addressed the SCRA’s protections against non-judicial auto repossessions.

Under the agreement, Hudson Valley FCU has agreed 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 has also taken steps to repair the credit of the affected service members.

The credit union will pay a civil penalty of $30,000 to the United States.

Also, the credit union has committed to protecting service members’ rights in the future.

Read the press release.
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