Cell Phone Provider to Pay $500,000 for Violating Servicemembers’ Legal Rights
The U.S. Department of Justice announced that Teleguam Holdings, LLC (GTA) has agreed to pay $500,000 to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA). The allegations involve GTA unlawfully charging early termination fees to more than 1,300 military servicemembers who canceled their cell phone contracts due to military relocation orders.
“Servicemembers will not be penalized because of their patriotic service to our country,” said Assistant Attorney General Harmeet K. Dhillon of the Civil Rights Division. “We will vigorously prosecute companies that refuse to abide by federal law that protects our great men and women in uniform who actively serve to protect our Nation.”
As part of the settlement, GTA will pay $450,000 in compensation to affected servicemembers, including double damages to those who paid the early termination charges and a $50,000 civil penalty. GTA will also revise its policies to ensure compliance with the SCRA, allowing eligible servicemembers to terminate their contracts without early termination charges.
SCRA enforcement efforts are led by the Civil Rights Division’s Housing and Civil Enforcement Section in coordination with U.S. Attorneys’ Offices across the nation. Since 2011, the Department has obtained more than $482 million in relief for over 148,000 servicemembers under the SCRA. More information is available at www.servicemembers.gov.
Servicemembers and their families who believe their SCRA rights have been violated are encouraged to contact the nearest Armed Forces Legal Assistance Program Office. Locations can be found at legalassistance.law.af.mil.
Cases like this highlight the importance of accurately verifying a servicemember’s active duty status before taking any adverse action. If you’re a lender, property manager, or legal professional, make sure you’re in full compliance. Use SCRACVS to obtain fast, reliable, and SCRA-compliant military status verifications.
