Capitol One to pay $12M in case on servicemen

Filed under: Banking & Finance,Daily News | Tags:, , ,

The Justice Department says Capital One has agreed to pay $12 million to resolve allegations the bank violated special protections in federal law for members of the military.

The government says Capital One wrongfully foreclosed on some homes and improperly repossessed some cars. In addition, the government says the bank obtained wrongful court judgments against some service members and improperly denied interest rate relief on some credit card and car loans.

In a settlement under the Servicemembers Civil Relief Act, Capital One will pay at least $125,000 to each service member whose home was unlawfully foreclosed upon and at least $10,000 to each service member whose vehicle was unlawfully repossessed.

Capital One will provide $5 million to service members denied appropriate benefits on credit card accounts, auto and consumer loans.

 

One Response to Capitol One to pay $12M in case on servicemen

  1. Well now, I bet Capital One is reaping some awesome benefits from the freedom the soldiers, sailors, and marines are providing! “Here ya go men and women, while you are fighting for us, we are taking your homes!” Disgraceful, but people will still do business with them. Maybe next time they can send their Vikings (from commercials) into the war instead!

    Randy
    July 29, 2012 at 6:26 pm