El Paso and Towing Firms Fined For Illegally Auctioning Deployed Soldiers’ Vehicles

Improper Impounding and Auctioning

Two towing companies in El Paso, Texas, have been ordered to pay damages and civil penalties for improperly impounding and auctioning off 176 vehicles belonging to deployed U.S. armed forces members. This follows a similar case involving Hyundai and Kia, who paid a $300,000 settlement for repossessing cars from active-duty members.

Settlement Details

An agreement reached earlier this month involves the U.S. Justice Department, the City of El Paso, United Road Towing, and Rod Robertson Enterprises. As part of the settlement, the city will pay a $20,000 civil penalty. It will also need to develop policies to ensure contractors comply with the Servicemembers Civil Relief Act (SCRA) when auctioning and disposing of impounded vehicles.

Penalties for Towing Companies

Rod Robertson Enterprises, the city’s former contractor, will establish a $140,000 settlement fund to compensate affected soldiers and pay a $20,000 civil penalty. United Road Towing, the current contractor, will establish a $57,395 settlement fund, pay a $24,980 civil penalty, provide SCRA training to employees, investigate the military status of registered owners before auctioning a vehicle, and obtain a valid SCRA waiver before auctioning a vehicle owned by a protected individual.

Investigation and Consequences

The U.S. Justice Department launched an investigation into the auctioning of vehicles owned by armed forces members after the City of El Paso towed Lieutenant Colonel Lisa Dechent’s 2016 Chevrolet Silverado while she was deployed to Afghanistan. United Road Towing sold the vehicle at auction without obtaining a court order, resulting in a $6,200 sale price while Dechent still owed $13,000 on the loan.

Protecting Servicemembers’ Rights

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division emphasized the importance of protecting the rights of servicemembers. She stated, “Members of our armed forces should not have to worry about their cars being auctioned off while they are on the front lines defending our freedoms, liberties, and rights. These settlements should send a strong message to other cities that they should not take advantage of the rights of our servicemembers while they are defending us from harm.”