Hudson Valley Federal Credit Union Busted Illegally Repossessing Cars Of Active Duty Military Personnel Serving Overseas

Hudson Valley Credit UnionHudson Valley Federal Credit Union has agreed to pay $95,000 over allegations that it violated the Servicemembers Civil Relief Act. SCRA-protected service members accused the credit union of illegally repossessing their cars.

Hudson Valley Federal Credit Union will pay $65,000 to compensate 7 service members whose cars it unlawfully repossessed while overseas. The credit union also will pay a civil penalty of $30,000 to the federal government. 

The USAO investigation found seven additional victims as a result of the investigation. It was also discovered the credit union also did not have any written policies dealing with SCRA’s protections. They also found the credit union did not have any procedures in place for non-judicial repossessions.

Manhattan U.S. Attorney Geoffrey S. Berman said: 

Protecting service members is a high priority for this Office and the country.

Acting Assistant Attorney General John Gore said:

Financial institutions must recognize and honor their responsibilities to our men and women in uniform.  Our nation depends upon the selfless devotion and sacrifice of our service members and we must ensure that they receive all rights and protections afforded to them by law.

Hudson Valley Federal Credit Union agreed to provide $10,000 in compensation to the affected service members. They also agreed to pay any lost equity in the vehicle with interest. 

An additional service member will receive $5,000. The credit union repossessed his vehicle but returned within 24 hours.  Hudson Valley has also taken steps to repair the credit of the affected service members. 

For more information about the United States’s SCRA enforcement efforts, please visit  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 at


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