Airman served in the US Navy only to have his car taken away while on duty – the company had no right and now owes more than $330,000

A SERVICE member’s car was towed while she was on duty despite having the proper documentation for federal protection.

The institution now owes nearly $80,000 to the government and $10,000 to each affected service member, in addition to any additional lost assets.

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In 2014, Navy aviator Jessica Johnson purchased a Hyundai Elantra from Hyundai Captial America – the auto company’s in-house finance division that offers financing for Kia and Hyundai vehicles.

She made her payments faithfully and everything went smoothly after she enlisted in the Navy nine months after her purchase, reported Military Times.

Until she received deployment orders in 2017, ordering her to stay away from home for an undetermined period of time.

She turned in her enlistment applications and an application for Servicemembers Civil Relief Act (SCRA) benefits.

The SCRA is a federal ruling that states that auto financing and leasing companies cannot repossess a military member’s property without a court order while on active duty.

It also details that a member only needs to have made one payment since the time of purchase to be protected by the federal government.

Anyone from the Army, Marine Corps, Navy, Air Force, Coast Guard and Reserve is protected.

Even members of the National Guard are covered if they are under federal orders for more than 30 days.

Therefore, Johnson should have been protected from reinstatement after being deployed.

Her vehicle was safe while she was away – when she returned, she was involved in a mix-up with the finance company.

While she was away, her account became delinquent.

When she returned home, she called the dealership to say she was no longer in service but still on active duty — and advised that her vehicle should still be federally protected.

The employee she spoke with recommended her vehicle be repossessed anyway, despite paperwork showing Johnson was on active duty.

Shortly after the recommendation was made, Johnson’s Elantra was towed.

She tried to contact the dealership again to explain the SCRA benefits and its parameters, but her calls went unanswered.

Three months later, the company sold its car.

Members of our Armed Forces should not have to worry about repossessing their cars while serving in the military.

Assistant Attorney General Kristen Clarke of the Department of Justice’s Civil Rights Division

Johnson wasn’t the only service member who faced similar incidents with his Kia or Hyundai vehicle.

Nearly 30 other members had their vehicles improperly repossessed while on active duty or in service between 2015 and 2023.

Beth Kubala, executive director of the Betty and Michael D. Wohl Veterans Legal Clinic in New York, reinforced the law’s purpose of protecting military personnel who may be deployed at any time.

“Think about a military member who moves frequently, who may receive unexpected orders for a month or a year of training, or who may unexpectedly receive deployment orders,” she said.

Soon after, a lawsuit emerged seeking justice for the soldiers who saw their cars repossessed against federal orders.

Earlier this month, the Office of Public Affairs announced that Hyundai Capital America was ordered to pay $333,941 to resolve its violations against the 26 service members under SCRA protection.

Who is getting paid?

According to the Office of Public Affairs, the concessionaire will pay each of the affected service members.

All 26 military personnel who had their vehicles repossessed while deployed or on active duty from 2015 to 2023 will be paid by Hyundai Capital America.

Each member will receive a check for $10,000 in addition to any lost assets they suffered as a result of the wrongful repossession for a total of $333,941.

The financial company was also ordered to pay the US government a $74,941 fine for violating federal law.

They were also required to provide essential SCRA to all current and new employees and implement policies to ensure SCRA guidelines are followed.

Source: Public Relations Office

Each member will receive $10,000 from the company and “any lost assets” resulting from the wrongful repossession.

They were also ordered to pay $74,941 to the US government.

Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division defended the 26 service members, saying they were violated while protecting their county.

“Members of our Armed Forces should not have to worry about repossessing their cars while in the military,” she was quoted in the statement.

“The Department of Justice remains steadfast in its commitment to enforcing laws that safeguard the rights of our service members so they can devote their full energy and attention to defending our country.”

The finance company was also required to provide SCRA training to its employees and implement any policies necessary to comply with SCRA guidelines.