VIRGINIA BEACH, Va. — A settlement has been reached in a lawsuit against a Virginia Beach-based towing company accused of auctioning off vehicles that belonged to Servicemembers Civil Relief Act (SCRA)-protected servicemembers, according to court documents.
On April 15, 2022, the Justice Department filed a complaint containing numerous allegations against Steve's Towing Inc.
The lawsuit included the following claims and allegations against the towing company, according to court documents:
- The towing company violated the SCRA, which provides a variety of financial and housing protections to military personnel.
- The company failed to obtain court orders before auctioning off vehicles belonging to at least seven SCRA-protected servicemembers. Two of the vehicles belonged to a member of a Navy SEAL team who was deployed overseas.
- The company had a pattern of not being compliant with the SCRA.
On April 7, 2023, the Justice Department released a statement stating that it has reached an agreement with Steve's Towing Inc.
"The Justice Department has entered into a consent order requiring Steve’s Towing Inc. in Virginia Beach, Virginia, to pay $90,000 to settle a complaint alleging that the company violated the Servicemembers Civil Relief Act (SCRA)," said the statement.
U.S. Attorney for the Eastern District of Virginia Jessica D. Aber, who submitted the notice of settlement document, emphasized the importance of upholding the SCRA.
“Servicemembers often rely heavily on their personal vehicles to commute to work and care for their families. A servicemember’s loss of a vehicle, therefore, can affect the military’s readiness,” said Aber. “EDVA is dedicated to holding accountable businesses who do not uphold the right of servicemembers under the SCRA.”
