CHARLOTTE, N.C. — Wells Fargo is accused of illegally charging high-interest rates to deployed military members and trying to cover up the scheme, according to a new lawsuit filed in North Carolina.
The lawsuit, which was filed on March 20, alleges the bank violated the Servicemembers Civil Relief Act, which guarantees debts for service members to be reduced at a 6% interest rate. The rule is supposed to take effect from the date a military member gets their deployment orders through their time on active duty.
Attorneys say the rule is also supposed to require banks to permanently forgive any interest above 6%. The lawsuit accuses Wells Fargo of illegally charging higher interest rates, improperly inflating servicemembers' principal balances and then charging compound interest on those balances.
The suit says these military families didn't learn about the scheme until 2022, when the bank sent "misleading correspondence and payment checks" to some customers.
Wells Fargo is one of the largest employers in the Charlotte area.
Wells Fargo issued the following statement to WCNC Charlotte on Monday afternoon regarding the suit:
"Wells Fargo is committed to supporting all military servicemembers and providing the benefits and protections required by the Servicemembers Civil Relief Act (SCRA). We are still reviewing the details of this complaint."
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