Wells Fargo to pay $108 million for allegedly overcharging veterans on refis

That scandal came as the bank is still dealing with the fallout from its fake account scandal, which saw the bank fined $185 million for more than 5,000 of the bank’s former employees opening more than 2 million potentially unauthorized accounts to get sales bonuses.

The bank is also nearing a $142 million settlement in a class action lawsuit brought by the customers affected by the fake accounts.

And now, just seven days after disclosing the force-placed auto insurance issue, Wells Fargo announced that it agreed to pay $108 million to the federal government to settle allegations that the bank overcharged military veterans for refinance loans.

Specifically, the issue relates to a lawsuit from 2006 that claimed some Department of Veterans Affairs Interest Rate Reduction Refinance Loans originated by Wells Fargo should not have been eligible for VA guarantees due to the bank allegedly collecting unauthorized fees with the loans.

The suit was filed in 2006 and unsealed in 2011, and sought compensation for the government over claims paid by the VA after those loans defaulted.

Read on.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s