Towing Scandal Hits Troops’ Cars

A San Clemente towing company agreed to pay $160,000 after the Justice Department said it auctioned active-duty troops’ vehicles without court orders.

Quick Take

The Justice Department said S&K Towing auctioned or otherwise disposed of about 148 vehicles owned by protected servicemembers.
The settlement calls for $160,000 to go to servicemembers the government says may have been harmed.
The company is shutting down, but it must follow Servicemembers Civil Relief Act rules if it returns to towing.
The case fits a larger federal push against towing companies that sell military vehicles without the court orders the law requires.

What the Justice Department Said

The Justice Department filed its complaint on March 25, 2026, and said S&K Towing violated the Servicemembers Civil Relief Act between August 28, 2020, and April 15, 2025. The complaint says the company auctioned or disposed of about 148 vehicles owned by servicemembers protected under the law, and it says the vehicles were handled without the court orders required before such sales.

The department later announced a civil settlement that resolves those claims for $160,000. The agreement says the money will compensate servicemembers the United States identified as potentially harmed. It also says the company is in the process of shutting down, but if it returns to towing or storing vehicles, it must adopt policies and procedures to comply with the law.

Why the Case Matters Beyond One Company

This case matters because it shows how a basic breakdown in business rules can hit people in military service hard. The Servicemembers Civil Relief Act limits what a company can do when a servicemember’s vehicle is involved, and the complaint says S&K Towing had no SCRA policies or training materials in place. That gap is more than a paperwork issue. It can mean a deployed or active-duty owner loses a car without the legal protection Congress required.

The allegations also point to a wider enforcement pattern. The Justice Department has brought repeated cases against towing companies for similar conduct, which suggests this is not a one-off mistake. For readers across the political spectrum, the story fits a familiar frustration: rules meant to protect ordinary people are often ignored until a federal agency steps in. Here, the people harmed were servicemembers who may have had little practical power to stop the sales in time.

What the Settlement Does and Does Not Prove

The settlement ends the civil case, but it does not work the same way as a criminal conviction. Civil settlements often resolve disputes without a court finding on every disputed fact, and the agreement here is focused on payment and compliance terms. The public record supports the government’s allegations, but the settlement itself is still a negotiated resolution, not a trial verdict.

"S&K Towing illegally sold or disposed of as many as 148 vehicles, many of which were towed from Marine Corps Base Camp Pendleton."

This is after these servicemen & women have predatory lenders offering to sell, so bad Congress capped it at 36%.https://t.co/ISCscK6rce

— 7038X (@7038X) July 15, 2026

That distinction matters because some of the most emotional parts of the story can blur the legal line. The allegations are serious, especially because they involve active-duty servicemembers and a large number of vehicles. Still, the strongest proven facts are the government’s complaint, the settlement terms, and the company’s obligation to change its practices if it resumes business.