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CarMax to Pay Nearly $500,000 to Remedy Illegal Repossessions of U.S. Servicemembers' Vehicles

02/23/2026 07:00 AM EST

The Justice Department today announced that it has reached a settlement with CarMax Inc., the nation's largest retailer of used cars, to resolve allegations that CarMax violated the Servicemembers Civil Relief Act (SCRA) by illegally repossessing motor vehicles owned by members of the military. As part of the settlement, CarMax will pay at least $420,000 in damages to servicemembers and a civil penalty of $79,380 to the United States.

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