CALIFORNIA
The Department of Justice announced Tuesday that it got an additional $5.4 million for servicemembers whose vehicles were unlawfully repossessed by Well Fargo Bank.
The bank violated the Servicemembers Civil Relief Act and the evidence indicated that about 450 servicemen under a 2016 settlement agreed to settle the case, according to officials.
This additional amount brings the total compensation under the settlement to more than $10.1 million and the total number of servicemembers eligible for relief to more than 860.
On Sept. 29, 2016, the department filed a complaint in United States v. Wells Fargo Bank N.A., d/b/a Wells Fargo Dealer Services in California, alleging that Wells Fargo repossessed 413 vehicles of Civil Relief Act-protected servicemembers without court orders between Jan. 1, 2008 and July 1, 2015.
On the same day, the department agreed to a settlement that required Wells Fargo to pay $10,000 to each of the affected servicemembers, plus any lost equity in the vehicle with interest.
Wells Fargo was also required to pay a $60,000 civil penalty to the government and repair the credit of all affected servicemembers.
“Just a few days ago, we observed Veterans Day to honor those who have served our country so bravely,” said Acting Assistant Attorney General John M. Gore. “The Justice Department will continue to honor their service throughout the year by vigorously enforcing servicemembers’ rights under federal law. The men and women of our armed forces should be able to devote their full attention to their military duties, without having to worry about their cars being repossessed back home. We are pleased that our settlement agreement has ensured that hundreds of additional servicemembers will be compensated for the damages they suffered as a result of illegal auto repossessions.”
“The SCRA provides important protections and is intended to prevent unnecessary financial hardship for the brave women and men who serve in our armed forces,” said Acting U.S. Attorney Sandra R. Brown. “Losing an automobile through an unlawful repossession while serving our country is a problem servicemembers should not have to confront. We are pleased that Wells Fargo is taking action to compensate these additional servicemembers as required under the settlement with the Justice Department. My Office is committed to protecting the rights of servicemembers on all fronts.”
The SCRA requires a court to review and approve any repossession if the servicemember took out the loan and made a payment before entering military service.
The court may delay the repossession or require the lender to refund prior payments before repossessing.
The court may also appoint an attorney to represent the servicemember, require the lender to post a bond with the court and issue any other orders it deems necessary to protect the servicemember.
By failing to obtain court orders before repossessing motor vehicles owned by protected servicemembers, Wells Fargo prevented servicemembers from getting a court’s review of whether their repossessions should be delayed or adjusted to account for their military service, according to officials.