Wells Fargo repays $5.4 million for repossessing service members' cars
Wells Fargo & Co
The third-largest U.S. bank has now repaid about $10.2 million to roughly 860 service members and their co-borrowers for improper repossessions, under a settlement announced in September 2016.
Other violations covered by that settlement were discovered more recently, leading to the latest payout, the Justice Department said.
Wells Fargo was also fined $20 million in September 2016 by the Office of the Comptroller of the Currency in a related case.
The OCC had cited the San Francisco-based lender for violations of the federal Servicemembers Civil Relief Act from 2006 to 2016.
It said the violations included exceeding a 6-percent interest rate cap on loans, failing to accurately disclose service members` active duty status to courts, and failing to obtain court orders before conducting repossessions.
In a statement, Wells Fargo spokeswoman Natalie Brown said the $5.4 million payout came "as part of our commitment to a comprehensive, ongoing account review process and as part of our consent order work."
Wells Fargo has for more than a year been addressing fallout from a variety of practices, including its creation of potentially millions of unauthorised customer accounts.
In August, it agreed to pay the U.S. government $108 million to settle a whistleblower lawsuit accusing it of charging military veterans hidden fees to refinance mortgages, and concealing those fees when seeking federal loan guarantees.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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