The Justice Department filed a lawsuit Tuesday in the Eastern District of Michigan to recover damages from the COPOCO Community Credit Union, according to a DOJ press release. The suit alleges that the credit union “violated the Servicemembers Civil Relief Act (SCRA) by repossessing protected servicemembers’ motor vehicles without obtaining the necessary court orders,” according to the release.
The department’s complaint alleges that COPOCO’s vehicle repossession procedures did not include any process to determine customers’ military status – such as checking the Department of Defense’s database – prior to conducting repossessions without court orders.
Through the SCRA, the law prohibits repossessing a motor vehicle from a servicemember during military service without a court order if the individual made a deposit or installment payment on the loan before entering military service. The act also requires a court to review and approve any repossession if the servicemember took out the loan and made a payment before entering military service.
“This law was designed to ease the legal and financial burdens for servicemembers and their families when facing the demands of active duty,” U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, said in the release. “We owe it to all servicemembers to vigorously enforce these laws to protect them while they are serving their country.”
Specifically, in the complaint filed this week, it is alleged that COPOCO illegally repossessed U.S. Army Private First Class Christian Carriveau’s car, along with his two-year-old daughter’s car seat, out of his driveway in Lacey, Washington, near Joint Base Lewis-McChord. Private First Class Carriveau was away at military training at the time.
“No servicemember should be penalized for honorably serving our country,” Principal Deputy Associate Attorney General Bill Baer, said in the release. “COPOCO Community Credit Union’s alleged misconduct in repossessing vehicles without the required court order is both wrong and illegal. The Justice Department continues to ensure that we are doing all we can to protect and assist servicemembers, veterans and their families from unlawful conduct by creditors.”
By failing to obtain court orders before repossessing motor vehicles owned by protected servicemembers, Bay City, Mich.-based COPOCO prevented court review of whether such repossessions should be delayed or adjusted in light of military service, the DOJ wrote in the release.
In addition to monetary damages for affected servicemembers, the SCRA provides for civil monetary penalties of up to $60,000 for the first offense and $120,000 for each subsequent offense. The DOJ said it will also seek changes in how COPOCO conducts future repossessions.
