Alabama Auto Dealership to Pay $137,000 Settlement Over Servicemember Vehicle Lease Violations

 

A military servicemember salutes the flag

Alabama Auto Dealership Agreed to Pay $137,000 Over Servicemember Vehicle Lease Violations: What Military Families Need to Know

The U.S. Department of Justice (DOJ) recently announced that Holmes Motors Inc., a "lease here, pay here" dealership operating in Alabama, Mississippi, and Georgia, has agreed to pay more than $137,000 to resolve allegations that it violated the rights of active-duty military servicemembers under the Servicemembers Civil Relief Act (SCRA). The settlement serves as another reminder that federal law provides important protections to military personnel whose service obligations can unexpectedly disrupt financial commitments such as vehicle leases.

The case also highlights the government's continued commitment to enforcing consumer protections designed specifically for America's servicemembers.

What Happened?

According to the Department of Justice, Holmes Motors allegedly violated the Servicemembers Civil Relief Act by unlawfully repossessing vehicles leased by military personnel without first obtaining the court orders required by federal law.

The DOJ further alleged that the dealership failed to return security deposits and prepaid lease amounts to servicemembers who legally terminated their leases after receiving qualifying military deployment or relocation orders. Federal investigators identified multiple violations involving several servicemembers.

Perhaps most concerning, officials stated that in one instance the dealership repossessed a vehicle after the servicemember had already provided military deployment orders requiring deployment in support of operations at the southern border.

Understanding the Servicemembers Civil Relief Act

The Servicemembers Civil Relief Act is a federal law intended to reduce legal and financial burdens on individuals serving in the United States Armed Forces.

Among its many protections, the law allows eligible servicemembers to terminate certain vehicle leases early when they receive qualifying military orders, including:

• Permanent Change of Station (PCS) orders
• Deployment orders for a qualifying period
• Other military assignments meeting statutory requirements

Additionally, creditors and leasing companies generally cannot repossess leased vehicles owned by protected servicemembers without first obtaining a court order when the SCRA applies. These safeguards are designed to ensure military personnel can focus on their missions rather than worrying about financial complications back home.

Settlement Terms

Under the settlement agreement announced by the DOJ, Holmes Motors agreed to:

• Pay $77,348 directly to affected servicemembers.
• Pay a $60,000 civil penalty to the United States.
• Implement new policies and employee training designed to improve future compliance with the Servicemembers Civil Relief Act.

The total financial resolution exceeds $137,000, combining compensation for impacted military members with the federal civil penalty.

Department of Justice (DOJ) Sends a Strong Message

Justice Department officials emphasized that enforcing the rights of servicemembers remains a top priority.

Assistant Attorney General Harmeet K. Dhillon stated that the Servicemembers Civil Relief Act exists to lessen the legal and economic burdens associated with military service and reaffirmed that the Department of Justice remains committed to enforcing those protections.

Likewise, U.S. Attorney Phillip W. Williams Jr. noted that deployed servicemembers should never have to worry about their vehicles being illegally repossessed while serving the country and emphasized that compliance with the law is not optional.

Holmes Motors Responded with a Public Statement

Following the settlement, Holmes Motors issued a public statement acknowledging the resolution while maintaining its longstanding support for military customers.

The company stated that it has served thousands of military families over the years by offering military discounts and favorable financing programs. Holmes Motors also noted that the settlement involved a relatively small number of transactions out of approximately 20,000 vehicle transactions during the relevant period.

The dealership further stated that some of the issues involved administrative or documentation deficiencies rather than improper charges and explained that it had already absorbed certain financial losses instead of passing costs on to affected servicemembers. The company also announced that it has strengthened internal compliance procedures, enhanced employee training, and expanded review processes to prevent similar issues from occurring in the future.

Importantly, settlements such as this generally resolve allegations without requiring the company to admit liability.

Why This Case Matters for Military Families

Military families often face unique financial challenges because deployments and relocations can occur with little notice. Congress enacted the Servicemembers Civil Relief Act specifically to protect those serving the nation from unnecessary financial hardship resulting from military obligations.

Cases like this reinforce several important principles:

• Businesses serving military customers must understand and comply with federal protections.
• Servicemembers have legal rights that cannot be ignored during deployments or qualifying relocations.
• Federal agencies continue to actively investigate alleged violations and seek compensation for affected military personnel.

The Department of Justice noted that since 2011, its enforcement of the Servicemembers Civil Relief Act has resulted in more than $489 million in monetary relief benefiting over 152,000 servicemembers.

What Should Servicemembers Do?

Active-duty military members who believe a lender, leasing company, or dealership has violated their rights under the Servicemembers Civil Relief Act should not assume they have no recourse.

They may wish to:

• Keep copies of military orders and all communications with creditors or dealerships.
• Document any repossession activity or lease disputes.
• Contact their nearest Armed Forces Legal Assistance Office.
• Report suspected violations to the Department of Justice for review.

Final Thoughts

The Holmes Motors settlement underscores the importance of the Servicemembers Civil Relief Act and the protections it provides to active-duty military personnel. While the case involved only a limited number of transactions, it demonstrates that businesses are expected to comply fully with federal law when serving military customers.

For servicemembers, understanding these legal protections can make a significant difference during deployments, relocations, and other military assignments. For dealerships and lenders, the case serves as a reminder that robust compliance programs and employee training are essential to ensuring military consumers receive the protections guaranteed by law.

YouTube: Alabama car dealership agrees to pay $137,000 over lease allegations

Sources:

Auto Dealership to Pay $237,000 for Mishandling Servicemembers' Vehicle Leases. Justice.gov. 30 July 2026.

"Alabama car dealership agrees to pay $137,000 over lease allegations." WVTM 13 News. 30 July 2026.

Florida Woman Purchases BMW With a Fake Cashier's Check, Now She's On the Run from the Police

Marion County Deputies are looking Florida woman who used a fraudulent cashier's check to purchase a BMW from an auto shop, including a $100 tip for employees.

BMW; photo by Zan on Unsplash

FOX 35 Orlando reported that Alexandria Walker tried to "pull a fast one" at Baseline Auto Care Center in Ocala, FL after writing a check to pay for a BMW and even including a $100 tip for the workers.

Florida Woman Gives Fraudulent Check to Auto Shop to Buy BMW

Alexandria Walker, 28, visited Baseline Auto Care Center in Ocala on Oct. 11 and expressed her interest in buying a BMW, according to the sheriff’s office. She filled out all the paperwork and handed over a cashier’s check for the full amount of the car, plus a $100 tip.

However, when the auto shop tried to deposit the check, they were informed that it was fake and contacted Walker. She claimed that she would return to the shop to pay for the car, but she never did, the sheriff’s office said.

The stolen BMW was later found by the deputies, who discovered printers, blank checks, and an iPad in the trunk. The sheriff’s office said that Walker was involved in an organized fraud scheme and had previously been arrested in March on similar charges.

The sheriff’s office posted a photo of Walker on Facebook and urged her to turn herself in. The photo on the right appears to be a beauty pageant photo with the sash reading "Mrs. Marion County."

Her photos are seen below.

Alexandria Walker

The Facebook post read:

“Now, Alexandria, we know you don’t like paying for things, but it is time to pay the piper. If you don’t turn yourself in, our citizens will.”

Anyone with information about Walker’s whereabouts is asked to contact Crime Stoppers of Marion County at 352-368-STOP and reference 23-59 in their tip.

Real Life Grand Theft Auto: After a Postal Worker in Ohio is Robbed, a Crime Ring is Uncovered in Detroit

After a U.S. Postal Service (USPS) postal worker is robbed for his mailbox key, authorities find much more than just stolen mail. They find stolen cars and a crime ring in Detroit, Michigan.

A Dodge Challenger; Photo by Haidong Liang on Unsplash

Some criminals have a need for speed and get their 5 seconds of fame burning rubber before it all comes to a screeching halt over a spike strip.

Yahoo! News published a story reported by the Associated Press (AP) that all started when investigators started looking into careless thieves in the Ohio area that have a penchant for stolen cars.

Police Investigate into a Robbery and Find Much More

Police stopped Devin Rice on 31 January 2022, on suspicion of robbing a U.S. postal worker in Shaker Heights, OH for his mailbox key. They searched Rice’s car and found stolen credit and debit cards, fake checks, stolen mail, and stolen vehicles — a Dodge with a Hellcat engine, a Ram pickup truck, and a Range Rover. (Source: Yahoo!/AP)

Along with Devin Rice, Hakim Benjamin, Jaylen Harris, and Lavelle Jones were also charged with conspiracy and interstate transport of stolen vehicles, after being indicted in federal court in June 2022. All except Benjamin are also charged with mail theft and are expected to face trial in 2023. (Source: Yahoo!/AP)

After being caught, Jaylen Harris told the FBI that he and Lavelle Jones were contacting a crime ring in Detroit to get stolen vehicles and that these auto thieves “were selling to buyers in other areas, including Chicago and Indianapolis.” (Source: Yahoo!/AP)

In February 2022, Hakim Benjamin was driving a 2022 Dodge Challenger at 120 mph on Ohio State Route 2 until spike strips were laid down to stop him. Other cars with Hellcat engines have also been spotted traveling on Ohio State Route 2 at 140–150 mph that have eluded police. (Source: Yahoo!/AP)

AP spoke to Sgt. Jerry Hanna with the Macomb Auto Theft Squad.

He said:

“Thieves in the Detroit area are primarily going after Dodge vehicles with Hellcat engines, including Chargers and Challengers — ‘the fast ones.’…In the Detroit area they are selling them for like $3,500. Once they get that money in their pockets they go out and steal another one.” -Sgt. Jerry Hanna, Macomb Auto Theft Squad (Source: Yahoo!/AP)

Investigators are finding new Chargers, Challengers, and Ram pickups ending up in places like Indianapolis, Ohio, and along the East Coast at shipping ports. These stolen cars are being sold on the streets at prices between $3,500 to $15,000 USD. (Source: Yahoo!/AP)

Cars Stolen from Detroit Dealership Include Dodge Charger SRT Hellcat

One example of auto theft took place in a dealership showroom northwest of Detroit, Michigan. A thief drove a Ram pickup truck straight through the showroom’s glass wall.

General manager Jeff Schneider of Szott Chrysler Dodge Jeep Ram in Highland Township said,

“I think they were able to find some keys in a desk drawer and used them.” -Jeff Schneider, General manager of Szott Chrysler Dodge Jeep Ram (Source: Yahoo!/AP)

Authorities tracked one of the stolen cars to a suburb northwest of Detroit after they crashed a $100,000 Durango SRT Hellcat into a brick wall. Police were able to recover other vehicles from the auto theft: a 2017 Dodge Charger SRT Hellcat, a 2021 Dodge Ram TRX, and a 2021 Dodge Durango GT.

Dodge Charger SRT Hellcat; Photo by Yahya S.,CC BY 2.0

Thieves Using Handheld ‘Pro Pads’ Can Clone Key Fobs

Some thieves are using more expensive technology, such as handheld electronic ‘pro pads,’ like what a professional locksmith could use to clone a key fob by plugging it into an internal port of a vehicle. (Source: Yahoo!/AP)

CBS 12 News reported that new truck owner Danielle Danboise parked her $75K "fully loaded" Ford Platinum diesel truck in her Port St. Lucie, Florida driveway and thieves stole it quietly without breaking glass or the alarm going off.

When she called the police to report it stolen, they informed her she wasn’t the only one that day. She was the 12th call of auto theft.

She recalled to CBS 12 News:

“Literally said you’re the 12th phone call since this morning and it’s 1 o’clock in the afternoon I’m like what? It’s insane.” -Danielle Danboise, victim of truck theft. (Source: CBS 12 News)

Port. St. Lucie Assistant Police Chief Richard Del Toro spoke with CBS12 News about the speed and sophistication of these auto thieves.

He said:

“Like I said, these are professional groups coming up here. It’s not their first rodeo. Like I said, they’re using sophisticated equipment…It’s impossible to say how each truck was taken unless it’s later found. But when police busted two Miami area men last year, they found key fobs and a tablet-looking device…We caught a couple of people that happened to have this type of technology on them and that’s why really alerted us to what was going on." -Richard Del Toro, Port. St. Lucie Assistant Police Chief (Source: CBS 12 News)

"They use the software on the tablet device to plug in underneath the dashboard, which downloads all the vehicle information and then able to program these key fobs and basically clone them.” -Richard Del Toro, Port. St. Lucie Assistant Police Chief (Source: CBS 12 News)

Sounds like technology is becoming the enemy, and criminals are embracing it.

What Will Auto Dealers do to Prevent Thefts?

What are auto dealers doing to try and slow these thefts?

In the meantime, some car dealerships have resorted to using low-tech methods of preventing auto theft of their expensive cars, such as steering wheel locks and parking boots.

In this world of technology, "low tech" is now becoming the best theft deterrent for criminals engaged in real-life Grand Theft Auto.

Sources

Loftholm, Andrew. “Gone in 60 seconds: how car thieves are cloning key fobs to steal in silence.” CBS 12 News. 24 February 2022.

Williams, Corey. “Postal worker holdup leads to muscle car theft ring arrests.” Yahoo!/AP. 16 October 2022.