SAN ANTONIO – A North Side towing company agreed to pay a six-figure settlement to military servicemembers on Thursday for allegedly illegally scraping and selling parts of their cars dating back to 2020, the U.S. Department of Justice confirmed in a news release.
Vehicle Management Solutions (VMS) was given 10 days to pay a sum of $280,000 “to resolve allegations that the company illegally sold or scrapped approximately 93 vehicles owned by U.S. servicemembers in violation of the Servicemembers Civil Relief Act (SCRA),” the release stated.
Recommended Videos
The SCRA is a program created to protect military members by limiting or pausing financial and civil obligations during military service, according to the Consumer Financial Protection Bureau.
“The law prohibits a towing company from selling a vehicle owned by an SCRA-protected servicemember unless the company first obtains a court order authorizing the sale,” the release said.
According to the settlement document, VMS agreed to pay:
- $200,000 to servicemembers affected by the damage
- $60,000 to the United States Treasury as a civil penalty pursuant
- $20,000 to Sergeant Jeremy Cortez
Additionally, VMS agreed to update its policy and training to help avoid future SCRA violations.
The DOJ began its investigation into the Military City-based tow company in 2024 when a servicemember claimed his vehicle was towed and auctioned while deployed overseas, according to the release.
If a military member’s personal vehicle was auctioned, sold or disposed of by VMS between Aug. 1, 2020 and June 12, 2025, they may be eligible for a monetary award, according to the official settlement document.
Qualified servicemembers also must confirm the damage occurred “while you were in military service, after you had received orders to report for military service; or within 90 days after you left military service,” the document stated.
Servicemembers and dependents who believe their SCRA rights may have been violated are encouraged to contact the nearest Armed Forces Legal Assistance Program Office. Office locations can be found on its website.
Read also: