Wells Fargo & Co. has agreed to settle a lawsuit that alleges the bank harmed veterans by charging improperly high fees on mortgages. Wells Fargo has agreed to refund up to $10 million in fees to eligible military veterans who refinanced their mortgage with the bank. Wells Fargo has now joined JP Morgan Chase, who recently apologized for their misconduct, in settling lawsuits brought on by veterans who were allegedly charged excess fees or whose homes were foreclosed on.
The lawsuit filed in the State Court of Troup County, Georgia claimed the bank failed to use "reasonable care" in assessing attorney fees when complying with the Veterans Administration's Interest Rate Reduction Refinancing Loan rules.
Veterans who refinanced with Wells Fargo between Jan. 20, 2004, and Oct. 7, 2010, are eligible for the refunds from the settlement.
"Since the lawsuit allegation was raised, we have diligently worked with our veteran customers who inquired about their fees and we refunded them if there was an error in the third-party charges that were assessed," says Cara Heiden, co-president of Wells Fargo Home Mortgage. "We hope that by settling this matter, we can demonstrate to veterans our steadfast commitment to doing right by them."
Wells Fargo is the second major bank after Chase to settle a lawsuit in which allegations of mishandling mortgages for military families and veterans in violation of laws that are in place to limit interest rates and fees and to protect them from foreclosure.
As we previously reported here, J.P. Morgan Chase has recently apologized for overcharging at least 4,500 active service members and wrongly foreclosing on 18 military families.
Tags: Wells Fargo, JP Morgan Chase, lawsuit, veterans, refinanced mortgage, Veterans Administration, mishandling mortgages, interest rates, fees, wrongly foreclosing
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