A San Antonio towing company is on the hook for $280,000 after federal officials said it auctioned off or otherwise disposed of cars owned by U.S. servicemembers without getting the court orders that federal law requires. Vehicle Management Solutions, Inc. (known in filings as VMS) will provide $220,000 to affected servicemembers and pay a $60,000 civil penalty to the U.S. Treasury. Authorities estimate the company auctioned or scrapped roughly 93 vehicles tied to military personnel. The investigation began after a servicemember deployed to Kosovo in 2024 reported that their car was towed and auctioned while they were overseas.
According to MyTexasDaily, the settlement resolves claims that VMS violated the Servicemembers Civil Relief Act and requires the company to overhaul its towing, auction and employee training practices. Harmeet K. Dhillon told the outlet, "They should not have to return home to find that their car has been illegally sold," while Justin R. Simmons told MyTexasDaily that worrying about a vehicle's safety while deployed is a burden troops should not have to carry. The local report says identified servicemembers will be compensated from the settlement fund.
What the law requires
The Servicemembers Civil Relief Act prohibits selling or otherwise disposing of a servicemember’s vehicle without a court order while the servicemember is on active duty or within 90 days after service. The protection is meant to shield deployed troops from civil actions unfolding back home while they are away. The Department of Justice has made SCRA enforcement a priority and has repeatedly secured relief and policy changes in similar cases, according to the Servicemembers and Veterans Initiative at the Department of Justice.
How the case unfolded
The matter began after a servicemember stationed abroad reported that their car was towed and auctioned while they were deployed in 2024, which triggered a federal review of VMS’s towing and auction records. Investigators concluded that roughly 93 vehicles were auctioned or scrapped without the court orders required by the SCRA. The resulting settlement requires VMS to compensate affected troops and adopt new procedures to verify military status before selling a vehicle, MyTexasDaily reports.
Local implications
San Antonio’s large military population, including personnel stationed at several area installations, means the settlement is likely to resonate across the region as troops and families take a closer look at how their vehicles were handled. Legal advocates say the action fits into a broader federal effort to hold towing and repossession vendors accountable when SCRA protections are ignored.
Help for service members
Service members who believe their SCRA rights were violated can contact base legal assistance offices or file a complaint with the Department of Justice’s Servicemembers and Veterans Initiative for review and potential relief. The DOJ and military legal assistance programs also maintain guidance on how to seek compensation or recover property after an improper tow or sale, per the Department of Justice.
