Integrity Asset Management LLC, which manages approximately 55 multifamily apartment properties in and around El Paso, Texas, has agreed to pay $107,000 to settle allegations that it violated the Servicemembers Civil Relief Act (SCRA) by charging unlawful fees to servicemembers who terminated their residential leases early and by denying other servicemembers’ requests to terminate their leases.
“The Servicemembers Civil Relief Act compels landlords to allow servicemembers to cancel their leases without penalty if they obtain eligible military orders,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division of the Justice Department. “Early lease termination rights are crucial for our armed forces because they restrict the expenditures and expenses associated with military relocations and deployments. This consent order emphasizes the Department of Justice’s unwavering dedication to defending the rights of servicemembers, veterans, and their families.
Ashley Hoff, U.S. Attorney for the Western District of Texas, stated, “Our office is committed to ensuring that landlords and property managers recognize the rights of servicemembers and their families who willingly sacrifice for us all.” The settlement reached today will provide assistance to servicemembers affected by Integrity’s actions.
After beginning military duty or obtaining qualifying military orders, such as permanent change of station orders, orders for a deployment of at least 90 days, halt movement orders, and separation or retirement orders, the SCRA permits servicemembers to cancel a lease early. The SCRA bans landlords from imposing early termination fees when a servicemember ends a lease due to a deployment or other valid military orders.
Today, the department filed a case in federal court alleging that Integrity charged at least 17 servicemembers unconstitutional early termination costs. Some of these early termination costs were “concession chargebacks,” which obliged servicemembers to repay rent reductions or discounts they had obtained during their leases. These fees ranged from $132 to $2,032 per military member. Additionally, the lawsuit asserts that Integrity improperly declined the lease termination petitions of two additional servicemembers.
Integrity has agreed to pay $45,325 to the impacted servicemembers and a $62,029 civil penalty to the United States, pursuant to a proposed consent decree that was filed concurrently with the complaint and still requires court approval. The decision also compels Integrity to repair the credit of the servicemembers, give SCRA training to its workers, and adopt new SCRA-compliant rules and processes.
This case was conducted jointly by the Housing and Civil Enforcement Section of the Civil Rights Division and the U.S. Attorney’s Office for the Western District of Texas.
Since 2011, the department’s implementation of the SCRA has resulted in approximately $476 million in financial relief for over 121,000 servicemembers. Please visit www.servicemembers.gov for more details regarding the department’s SCRA enforcement activities.
The nearest Armed Forces Legal Assistance Program Office should be contacted by servicemembers and their dependents who believe their rights under the SCRA have been infringed. You can find office locations at http://legalassistance.law.af.mil.