The Hudson Valley Federal Credit Union has settled legal action taken against it by the U.S. Attorney’s Office in Manhattan over allegations of the bank’s illegal repossession of active-duty military members’ vehicles.

The Poughkeepsie-based bank acknowledged the settlement in an email sent by a spokeswoman. According to the U.S. Attorney’s Office, it has agreed to pay $30,000 to the federal government to settle the claims, while not admitting liability. An additional $65,000 will go to compensate service members whose cars were seized, federal prosecutors said.