Wells Fargo Troubles Mount With Penalty for Improperly Repossessing Soldiers’ Cars


Wells Fargo Troubles Mount With Penalty for Soldiers’ Loans

Wells Fargo & Co., reeling from weeks of pummeling over fraudulent customer accounts, is now facing a Justice Department sanction over improperly repossessing cars owned by members of the military, according to two people with knowledge of the investigation.

Federal prosecutors and the bank’s regulator, the Office of the Comptroller of the Currency, are planning to punish the San Francisco-based lender for alleged violations of the Servicemembers Civil Relief Act, said the people, who asked not to be named because the investigation isn’t public. A penalty of as much as $20 million is expected from the OCC, one of the people said. That’s an unusually large fine for abuse of this law, which in most cases requires that firms obtain court orders before seizing vehicles from soldiers, sailors, airmen and Marines who are delinquent on their loans.

These enforcement actions against the bank follow a $185 million settlement in which employees of the firm opened more than two million accounts that customers may not have been aware of with the aim of meeting internal sales targets. The matter has sparked weeks of sharp criticism, congressional hearings and the forfeit of tens of millions in bonuses for top executives.

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3 Responses to “Wells Fargo Troubles Mount With Penalty for Improperly Repossessing Soldiers’ Cars”
  1. Kelly Foote says:

    How do just contact these prosecutors over what wells fargo did to me?

  2. Vic Hentz says:

    Wells Fargo is just the tip of the iceberg. Only problem is that now that there is blood in the water, the regulatory “sharks” at all levels are jumping in on this one bleeding, wounded, beached whale, instead of taking a peak under the rug at the rest of the fat-cats.

    You KNOW damn well that they are all just as guilty of the same wrongdoings, if not worse!

    I can imagine that WF will go the way of BS in order to keep the heat off of the rest. Kind of a sacrificial lamb kind of thing, only with NO innocence!

    Oh, and that thing about hitting up their bonuses…..DREAM ON!

  3. Bobbi A. Lee says:

    Shame on Wells Fargo, doing this to our men and women in service of our country!
    Wells Fargo is guilty of a Lot more than this. I hope this opens the door to their lack of compliance
    with the “pick a pay” loans that they did not comply with orders from the Federal Government, claiming
    “deadlines passed & they did not have to” and then foreclosing so many people’s homes. They also
    forced sales of commercial properties in the millions and millions of dollars while telling lies to their
    customers acting like they were working with them; and their customers were in good standing… they
    were trying to reduce their “risk” portfolio and their customers expense. Mr Stumpf claims they have
    integrity.. It’s true that “what goes around, comes around” Nice try Mr. Stumpf! …. (then he blames the
    employees below him & doesn’t accept any responsibility according to Janet Yellen)

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