Property manager settles with DOJ on SCRA violations

Federal Issues Department of Justice SCRA Servicemembers Enforcement Consumer Finance

On June 13, the DOJ announced a settlement with a property management company resolving allegations that it charged nine servicemembers early termination fees after receiving military orders to relocate, in violation of the Servicemembers Civil Relief Act (SCRA) (see DOJ complaint here.) The SCRA affords protections to servicemembers who terminate a lease upon entering military service or receiving military orders to relocate, and prohibits landlords from imposing early termination charges on such servicemembers. Under the terms of the proposed consent order, the defendant will be required to pay $51,587 to the servicemembers and an additional $22,500 civil penalty. The DOJ also noted that the company must repair the servicemembers’ tenant database entries, implement new policies and procedures that comply with the SCRA, and train its employees on the SCRA.