Capital One settlement: $12 million to customers in military
| WASHINGTON
The Justice Department says聽Capital聽One聽has agreed to pay $12 million to resolve allegations the bank violated special protections in federal law for members of the military.
The government says聽Capital聽One聽wrongfully foreclosed聽on聽some homes and improperly repossessed some cars. In addition, the government says the bank obtained wrongful court judgments against some service members and improperly denied interest rate relief聽on聽some credit card and car loans.
In a settlement under the Servicemembers Civil Relief Act,聽Capital聽One聽will pay at least $125,000 to each service member whose home was unlawfully foreclosed upon and at least $10,000 to each service member whose vehicle was unlawfully repossessed.
Capital聽One聽will provide $5 million to service members denied appropriate benefits聽on聽credit card accounts, auto and consumer loans.
