from retirees and veterans . Top complaints by category were impostor scams , identity theft , and debt collection . For more information , visit : ftc . gov / militarytaskforce
DOJ Announces SCRA Enforcement Actions . On September 18 , the DOJ announced that it obtained a $ 907,000 settlement with CitiFinancial Credit Company , as successor in interest to CitiFinancial Auto Corporation , resolving allegations that it violated the Servicemembers Civil Relief Act by repossessing vehicles it allegedly knew were owned by protected servicemembers without first obtaining required court orders . The settlement covers vehicle repossessions between 2007 and 2010 . The SCRA requires a court to review and approve any repossession if the servicemember obtained financing for the vehicle and made a payment before entering military service . The court may then delay the repossession or require the creditor to refund prior payments by the servicemember before repossessing . The court may also appoint an attorney to represent the servicemember , require the creditor to post a bond with the court , and issue any other orders it deems necessary to protect the servicemember . DOJ alleged that by failing to obtain court orders before repossessing vehicles owned by protected servicemembers , CitiFinancial denied servicemembers their right to obtain a court ' s review of whether their repossessions should be delayed or adjusted to account for their military service .
On September 27 , the Justice Department announced that Westlake Services LLC and its subsidiary , Wilshire Consumer Capital LLC , have agreed to pay $ 760,788 to resolve allegations that the companies violated the SCRA by repossessing 70 vehicles owned by servicemembers without first obtaining the required court orders . Westlake , d / b / a Westlake Financial Services , is an auto finance company specializing in buying and servicing subprime and near-subprime retail installment sales contracts . The subsidiary , originates and services vehicle title loans . During its investigation , DOJ found that Westlake and Wilshire had failed to adopt policies and procedures necessary to ensure that their motor vehicle repossessions complied with the SCRA . The agreement requires Westlake and Wilshire to pay $ 10,000 to each of the 70 affected servicemembers , plus any lost equity in the vehicle with interest . Westlake and Wilshire also must repair the credit of all affected servicemembers , pay a $ 60,788 civil penalty to the United States and determine , in the future , whether any vehicle it plans to repossess is owned by an SCRA-protected servicemember . If so , Westlake and Wilshire will not repossess the vehicle without first obtaining a court order or valid waiver of SCRA rights . The agreement also provides that all eligible servicemembers will receive the benefit of the SCRA ’ s six percent interest rate cap on their auto loans .
Case of the Month
Dealer Dodges Insurance Claim . Barry Stein bought a used Toyota Camry from Kenny Ross Toyota , Inc . During the sales transaction , Stein provided his car insurance card to a representative of Kenny Ross . The insurance information was included in the sales agreement for the car . The sales agreement also included an integration clause , providing that the sales agreement encompassed the complete agreement between the parties and superseded any prior discussions or agreements .
Stein had a car accident that resulted in injuries to James Hohman . Stein ’ s insurer , Mutual Benefit Insurance Company , notified him that the Camry was not a covered vehicle under his policy . As a result , Hohman ’ s insurance company paid Hohman on an uninsured motorist claim and sued Stein . Stein settled the lawsuit with Hohman ’ s insurance company .
Stein then sued Kenny Ross for negligence , negligent misrepresentation , breach of contract , and violation of the Unfair Trade Practices and Consumer Protection Law , all of which were based on Stein ’ s