Wells Fargo repays US$5.4 million for repossessing service members' cars

Wells Fargo repays US$5.4 million for repossessing service members' cars

Wells Fargo & Co has repaid another US$5.4 million to about 450 military service members whose vehicles it repossessed illegally, the U.S. Department of Justice said on Tuesday.

FILE PHOTO: A Wells Fargo branch is seen in the Chicago suburb of Evanston, Illinois, U.S. February 10, 2015. REUTERS/Jim Young/File Photo

REUTERS: Wells Fargo & Co has repaid another US$5.4 million to about 450 military service members whose vehicles it repossessed illegally, the U.S. Department of Justice said on Tuesday.

The third-largest U.S. bank has now repaid about US$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 later, leading to the latest payout, the Justice Department said.

Wells Fargo did not immediately respond on Tuesday to requests for comment.

The San Francisco-based bank was also fined US$20 million last year by the Office of the Comptroller of the Currency in a related case.

The OCC had cited Wells Fargo 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.

(Reporting by Jonathan Stempel in New York; Editing by Leslie Adler)

Source: Reuters

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