Wells Fargo To Pay $4 Million Over Repossessing Military Servicemembers' Cars

SACRAMENTO (CBS13) — Wells Fargo has reached a $4 million settlement with the U.S. Justice Department over allegations it repossessed more than 400 cars owned by servicemembers without a court order.

An investigation started after Wells Fargo's dealer services branch repossessed a car owner by a member of the Army National Guard while he was preparing to deploy to Afghanistan. Wells Fargo never responded to requests for information about his payment history, and investigators would find it was far from the first time this happened. They found 413 cars had been repossessed in similar ways over the course of seven years.

Prosecutors said the bank didn't bother with proper process when it came to taking back the cars, something that shouldn't happen to anyone, especially members of the military.

Under the terms of the agreement, Wells Fargo will pay each affected servicemember $10,000, as well as any lost equity in the vehicle and interest. The company must also fix their credit.