Wells Fargo faces class action lawsuit over alleged overcharging of military service members

Wells Fargo faces class action lawsuit over alleged overcharging of military service members - Industry News - News

A new class action lawsuit has been filed against banking giant Wells Fargo, accusing the institution of overcharging thousands of customers on credit card interest rates and fees for over a decade. The lawsuit, brought forth by plaintiffs Carmin Nowlin, Tamika Haley, and Jesus Rodriguez, bank-na.pdf” rel=”nofollow noopener” target=”_blank”>alleges that Wells Fargo charged active US military service members interest rates and fees that exceeded the limits set by the Servicemembers Civil Relief Act (SCRA).

Allegations of SCRA violations

The Servicemembers Civil Relief Act (SCRA) mandates that any debts incurred by service members before being called to active duty must have their interest rates reduced to 6%. Furthermore, banks are required to permanently forgive interest exceeding this rate. However, according to the plaintiffs, Wells Fargo engaged in a pattern of overcharging military service members despite marketing itself to this demographic, particularly those deployed overseas.

The plaintiffs assert that Wells Fargo breached its statutory and contractual duties to service members and engaged in deceptive practices by concealing overcharges and SCRA violations. The bank allegedly allowed unlawful charges to inflate servicemembers’ principal balances and even applied compound interest to these inflated amounts. Moreover, the plaintiffs claim that Wells Fargo continued these practices nationwide for over a decade while concealing the violations from affected military families.

Wells Fargo’s response and previous legal troubles

Currently, Wells Fargo has not stated the allegations in the lawsuit. This legal action adds to the recent lawsuits and complaints the banking giant has faced. Among these is a case involving a customer who reported that Wells Fargo failed to address the theft of thousands of dollars from her account, leaving her in limbo for seven months.

The class action lawsuit against Wells Fargo underscores the serious allegations of overcharging and deceptive practices targeting military service members. While the bank has yet to respond publicly to these accusations, its history of legal troubles raises concerns about its practices and treatment of customers. As the case unfolds, affected service members and consumers eagerly await clarity and accountability from one of the nation’s largest financial institutions.