CarMax settles with DOJ over illegal repossessions of dozens of servicemembers’ cars

2026-03-01 05:38:30

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CarMax has agreed to pay nearly $500,000 to settle allegations from the U.S. Department of Justice that it illegally repossessed dozens of military servicemembers’ vehicles. The settlement resolves claims that CarMax violated the Servicemembers Civil Relief Act (SCRA) by failing to obtain court orders for repossessions, some of which occurred even after servicemembers notified the company of their military status. The company will pay $420,000 in damages to affected servicemembers and a $79,380 civil penalty to the government, in addition to revising its policies to protect servicemembers’ rights.

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