San Antonio Company Forced to Pay After Wrongly Towing Military Service Members’ Cars

A tow truck company based in San Antonio, Texas, must pay $280,000 to resolve claims that they illegally sold or scrapped almost 100 vehicles owned by U.S. military service members.

Vehicle Management Solutions, also known as VMS, was accused of violating the Servicemembers Civil Relief Act when they sold or scrapped 93 cars owned by service members, according to a May 28 release from the Department of Justice.

The company allegedly “engaged in a pattern or practice of auctioning or otherwise disposing of vehicles” owned by service members “without obtaining the required court orders.”

The investigation started when a service member had his car towed and auctioned while overseas in Kosovo.

VMS will pay $220,000 in compensation to impacted service members, as well as a $60,000 civil penalty to the U.S. Treasury.

They must also “make policy and training changes to avoid committing future violations.”

Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division commended the settlement.

“When members of our Armed Forces are called to fight for our country, they should not have to return home to find that their car has been illegally sold,” she remarked.

San Antonio Tow Company to Pay $280,000 for Illegally Auctioning Servicemember-Owned Vehicles

“When members of our Armed Forces are called to fight for our country, they should not have to return home to find that their car has been illegally sold. Towing companies must comply… pic.twitter.com/8g7xvPSBIU

— DOJ Civil Rights Division (@CivilRights) May 28, 2026

“Towing companies must comply with federal laws that protect servicemembers or face serious consequences,” she added.

“The Department of Justice stands with our men and women in uniform and will vigorously defend their rights under the law.”

U.S. Attorney Justin Simmons for the Western District of Texas likewise said that the district “is proud to be home to countless military members and their families, as well as many veterans of our Armed Forces.”

“Deploying is hard enough. Worrying about the safety and security of one’s personal property while deployed is a concern no member of our military should carry,” he noted.

“In the Western District of Texas, we will always fight for those that fight for us, both while they are home and while serving our country overseas. This case is an example of our resolve and commitment to that mission.”

The Servicemembers Civil Relief Act offers various financial and legal protections for active-duty and reserve service members, as well as their families.

The act makes “certain rights conditional upon whether your ability to meet certain obligations is materially affected by military service.”

For instance, service members have added protections from foreclosures and evictions, deferment of income taxes, and safeguarding from default judgments.

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