In a decisive move to rectify violations of the Servicemembers Civil Relief Act (SCRA), New City Funding Corp, better known as NEW CITY, has been ordered to pay $120,000 in settlements and penalties. This New York-based auto financing company is compensating for the unlawful repossession of servicemembers' vehicles -- in a detail that showcases the might of justice, four individuals are set to receive $60,000 collectively, while the United States is to be paid an equal amount as a civil penalty.
Having its hands forced by an investigation sparked by a lawsuit filed in the Southern District of New York, NEW CITY had neglected mandatory court orders before repossessing vehicles belonging to servicemembers. Not only did the inquiry shed light on violations concerning four identified servicemembers, but it also exposed NEW CITY's regular failures to follow its own policies regarding the SCRA's protection against non-judicial auto repossessions. According to a statement from the U.S. Attorney's Office for the Southern District of New York, "NEW CITY has agreed to provide information regarding additional repossessions and will compensate any additional servicemembers whose cars were repossessed in violation of the SCRA."
U.S. Attorney Jay Clayton, having described the people of New York as supportive of their servicemembers, expressed the community's desire for legal protection of these individuals. "The Servicemembers Civil Relief Act protects our troops from having their cars and other assets seized while serving, and our Office stands ready to enforce those protections," told Clayton to the media. Assistant Attorney General Harmeet K. Dhillon echoed this stance, adding, "We will hold accountable any business that does not respect the legal rights of U.S. servicemembers," as per the U.S. Attorney's Office.
The redress for those affected includes compensating each of the four identified servicemembers with $15,000 plus lost equity and interest, a provision within the agreement that allows, also includes steps to repair the servicemembers' credit scores. In a testament to making amends, NEW CITY will be contacting servicemembers eligible for compensation through this settlement in the upcoming months, and payments will be distributed at no cost to the servicemembers. The company will additionally pay a civil penalty to the United States totaling $60,000, as per the U.S. Attorney’s Office's announcement.
The enforcement of the SCRA is coordinated by the Department of Justice's Civil Rights Division’s Housing and Civil Enforcement Section and various U.S. Attorney’s Offices across the nation. Servicemembers who suspect violations of their SCRA rights can seek counsel from the nearest Armed Forces Legal Assistance Program Office, with locations accessible at legalassistance.law.af.mil. This case was handled by the Civil Rights Unit of the U.S. Attorney’s Office’s Civil Division with Dana Walsh Kumar, Assistant U.S. Attorney, and Audrey M. Yap, Trial Attorney of the Civil Rights Division, leading the charge.
