NEW YORK – Hudson Valley Federal Credit Union has agreed to pay $95,000 to resolve allegations that it violated the Servicemembers Civil Relief Act by repossessing vehicles owned by service members protected under the act without first obtaining the required court orders.
Under the agreement, the credit union has agreed to pay $65,000 to compensate seven service members whose cars it unlawfully repossessed and will pay a civil penalty of $30,000 to the federal government.
The US Attorney for the Southern District of New York launched an investigation into Hudson Valley Federal Credit Union’s repossession practices after learning of two private lawsuits filed in federal court in which the plaintiffs alleged the credit union violated the federal law by repossessing the plaintiffs’ vehicles after they entered the military service.
Investigation identified seven additional violations and revealed that, prior to August 2014, the financial institution did not have any written policies or procedures that addressed the federal protections against non-judicial auto repossessions.
