Enforcement case record
HSBC Auto Finance SCRA Settlement: 75 Illegal Repossessions
- Defendant
- HSBC Auto Finance
- Year
- 2016
- Scale
- 75 automobiles
- Statute
- 50 U.S.C. § 3952
- Court
- N.D. Ill.
- Outcome
- Consent order (entered August 18, 2016): $434,500 in compensation to the victims of the illegal repossessions.
What happened
On August 8, 2016 the United States filed a complaint and a consent order in United States v. HSBC Auto Finance. The complaint alleged HSBC was responsible for repossessing 75 automobiles between 2008 and 2010 from protected servicemembers without obtaining court orders, violating Section 3952.
The court entered the consent order on August 18, 2016, ten days after filing. A complaint and consent order filed together is the ordinary shape of these cases: the investigation happens first, and the public filing is the resolution rather than the opening of a fight.
Section 3952 covers an installment contract for the purchase or lease of property where the servicemember made a deposit or installment payment before entering military service. Where it applies, the creditor cannot rescind the contract or repossess the property for breach during military service without a court order. The protection does not depend on the servicemember asking for it or notifying the lender.
The law behind this: 50 U.S.C. § 3952
Protection under installment contracts for purchase or lease: read the statute.
Who was covered
Servicemembers whose vehicles HSBC Auto Finance repossessed between 2008 and 2010 without a court order, where the loan predates military service and a payment was made before service began.
What the settlement paid
- $434,500 in compensation to the victims of the illegal repossessions, under a consent order entered August 18, 2016.
- Across 75 vehicles that works out to an average near $5,800 each, in the same range as the $10,000 per-servicemember figure Wells Fargo paid plus lost equity, and well below the six-figure minimums the foreclosure cases carry.
Why this case matters
The conduct ended in 2010 and the case resolved in 2016. SCRA enforcement routinely runs years behind the violation, which is why a repossession that happened during an old deployment is still worth checking against this ledger.
If you think you were affected
A repossession that happened without a court order does not become lawful with time, and the credit damage it caused is separately correctable.
This page is a record of a public enforcement action against HSBC Auto Finance. It is not a claim form, and this site cannot tell you whether you are in the covered group. These are the routes that can.
- Read the Justice Department’s own record: DOJ case page: United States v. HSBC Auto Finance (N.D. Ill.) . Settlement administration and any claim process are run from there, never from here.
- Start with what § 3952 requires before a repossession , which is the protection this case was brought under.
- Contact your nearest Armed Forces Legal Assistance office. It is free for servicemembers and dependents, and it is the right first call on any SCRA question about your own accounts. Our guide to SCRA legal help explains the options.
- Confirm your covered dates before you argue about them. The Defense Manpower Data Center issues a free military status certificate; our walkthrough shows how to pull one.
Other repossession cases
Every figure on this page is transcribed from the Justice Department record linked above, including its own hedges. Nothing is estimated or rounded. The ledger was last checked in full on July 11, 2026.
Heads up: SCRA Saver publishes general information, not legal or financial advice. Laws change and every situation differs. Confirm details with your installation legal assistance office (free for service members) or a licensed professional.