US Attorney Settles With Hudson Valley Credit Union

POUGHKEEPSIE, NY — Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and John Gore, Acting Assistant Attorney General, announced recently that Hudson Valley Federal Credit Union has agreed to pay $95,000 to resolve allegations that it violated the Servicemembers Civil Relief Act by repossessing vehicles owned by SCRA-protected service members without first obtaining the required court orders. Under the agreement, Hudson Valley has agreed to pay $65,000 to compensate seven service members whose cars it unlawfully repossessed and will pay a civil penalty of $30,000 to the United States.

Berman said his office launched an investigation into Hudson Valley’s repossession practices after learning of two private lawsuits filed in the Southern District of New York. In both lawsuits, the plaintiffs alleged that credit union violated the SCRA by repossessing the plaintiffs’ vehicles after plaintiffs had entered military service. The subsequent investigation identified seven additional violations and revealed that, prior to August 2014, the credit union did not have any written policies or procedures that addressed the SCRA’s protections against non-judicial auto repossessions.

Hudson Valley Federal Credit Union, headquartered in Poughkeepsie, is one of the largest credit unions in the country, and has committed to protecting service members’ rights in the future.

“Protecting service members is a high priority for this Office and the country. We are pleased that Hudson Valley has taken these remedial steps, and this Office will continue to protect the rights of men and women in uniform,” Berman said.

The agreement requires the credit union to provide $10,000 in compensation to each of the six affected service members, plus any lost equity in the vehicle with interest. An additional service member, whose vehicle was repossessed but was returned within 24 hours, will receive $5,000. Hudson Valley has also taken steps to repair the credit of the affected service members.

The agreement resolves the claims and causes of action asserted in the United States’ Complaint against Hudson Valley filed in the U.S. District Court for the Southern District of New York.

For more information about the United States’s SCRA enforcement efforts, please visit www.servicemembers.gov. Service members and their dependents who believe that their rights under SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found here.

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