Wells Fargo (NYSE:WFC), agreed to refund up to $10 million in fees that were over charged to eligible military veterans who refinanced their mortgages with the bank.
Originally reported by Fox5 News Atlanta, Veterans across America won another battle when Wells Fargo admitted to overcharging as many as 60,000 veteran military families nationwide who set up refinanced VA Home Loans.
The settlement came after a class-action lawsuit was filed in the State Court of Troup County, GA., claiming Wells Fargo “failed to exercise reasonable care” and charged improper higher fees to veterans in accordance with the Veterans Administration’s Interest Rate Reduction Refinancing Loan rules.
For those unaware of the rules, Veterans and active-duty military members are eligible for various protections against foreclosures, interest rates and fees. The banks failure to apply these special considerations is what resulted in the overcharges and lawsuit.
Wells Fargo admitted in a statement following the settlement that while most veterans were affected, some were not. To avoid any uncertainity and doubt, the bank is going to refund all veterans who refinanced during the period of Jan. 20, 2004, and Oct. 7, 2010, which is covered by the settlement. The bank by mail in a month and are eligible to receive $175 each.
This announcement comes less then a month after Chase (J.P. Morgan Chase & Co.) had admitted to overcharging more than 4,000 military families.
Below is the Fox News Atlanta story that broke the news.