Wells Fargo Troubles Mount With Penalty for Soldiers’ Loans
- DOJ sanctions beleaguered bank over auto repossessions
- Lender to pay $24 million for car seizures, says Justice, OCC
Can Wells Fargo CEO John Stumpf Keep His Job?
Wells Fargo & Co., reeling from weeks of pummeling over fraudulent customer accounts, was sanctioned by the Justice Department over improperly repossessing cars owned by members of the military.
Federal authorities are punishing the San Francisco-based lender for as many as 413 alleged violations of the Servicemembers Civil Relief Act, according to a statement Thursday from the Justice Department, which said the bank agreed to pay more than $4 million to compensate borrowers involved in unlawful repossessions spread over seven years. The bank’s regulator, the Office of the Comptroller of the Currency, also fined the company $20 million for a decade of transgressions, the agency said in a statement.