Allegations of Predatory Lending
A lawsuit filed against Wells Fargo alleges that the bank overcharged thousands of military members on credit card interest rates and fees for more than a decade. The lawsuit claims that Wells Fargo violated the Servicemembers Civil Relief Act (SCRA), which limits interest rates for active-duty service members to 6%.
Concealment of Overcharges
According to the plaintiffs, Wells Fargo specifically targeted service members and concealed the overcharges for years. The bank allegedly charged compound interest on inflated balances, further increasing the financial burden on military families.
Wells Fargo’s Response
Wells Fargo has not yet commented on the allegations. The bank has faced numerous lawsuits and complaints in recent months, including a case where a customer claims her account was compromised and the bank failed to assist her for seven months.
Impact on Military Families
The lawsuit alleges that Wells Fargo’s actions have had a significant impact on military families. The overcharges have reportedly caused financial hardship and stress for service members and their loved ones.
Ongoing Investigation
The lawsuit is currently ongoing, and it is unclear when a resolution will be reached. However, the allegations have raised concerns about the treatment of military members by financial institutions.
