The Justice Department announced today that Greystar Management Services LLC will pay over $1.4 million to resolve allegations that it violated the Servicemembers Civil Relief Act by imposing illegal fees on military servicemembers who terminated their leases after receiving military relocation orders.
The department alleged that Greystar, the nation’s largest property management company with over 800,000 housing units under management, relied on software that it knew would automatically impose early termination charges on SCRA-protected servicemembers.
Greystar will set aside $1.35 million to pay affected military members and their co-tenants and will pay a $77,370 civil penalty. Greystar will pay triple damages to the servicemembers who paid the early termination charges.
The company will also make changes to its policies and training, including the adoption of SCRA-compliant software and forms at all its properties.
“We honour the service and sacrifices of our military by defending their rights under the law,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “We are aggressively enforcing all laws, including the Servicemembers Civil Relief Act, to protect our military servicemembers and veterans.”
“America’s servicemembers devote their lives to defending our nation and must be able to do so without undue burdens,” said U.S. Attorney Bryan Stirling for the District of South Carolina. “The Servicemembers Civil Relief Act protects our military families from unfair hardships such as penalties for terminating a housing lease to fulfill military orders. We will continue to defend and support those who keep our country safe.”
