InfoBytes Blog
New York AG Announces Settlement with Virginia Developer for Violating Servicemembers Civil Relief Act
On May 10, New York Attorney General Eric T. Schneiderman announced that a Virginia-based company has agreed to pay $69,000 to settle allegations that, among other things, it violated the Servicemembers Civil Relief Act (SCRA) by unlawfully charging fees to servicemembers who terminated their residential leases early. Under the provisions of the SCRA, servicemembers and their families are allowed to terminate leases early without penalty if they are deployed, receive orders for permanent change of station, or their military service is honorably terminated. According to the Attorney General’s office, the company—which owns a community of townhomes in close proximity to Fort Drum and actively markets its housing to servicemembers and their families—also violated New York law by including “numerous unconscionable provisions” in its lease agreements, and advertising amenities that were either not included in the rent, or unavailable. Under the terms of the settlement, the company must pay more than $59,000 to over 125 servicemembers, reform its lease and other business practices to comply with New York law, and pay a civil money penalty of $10,000 to the State.