Wells Fargo Woes Continue: The DoJ, Military Loans And More Penalties

As if things weren't already bad for
Wells Fargo & Co
, the company is now facing another PR disaster.

The Justice Department has issued a sanction against the nation's largest bank for improperly repossessing cars owned by members of the military. According to a report from Bloomberg, federal authorities are punishing the bank for upward of 413 alleged Servicemembers Civil Relief Act violations.

Furthermore, the Office of the Comptroller of the Currency has issued Wells Fargo a penalty of up to $20 million. This penalty follows the highly publicized $185 million settlement following the 2 million fake accounts Wells Fargo opened in recent years.

Related Link: Yellen Pledges To Scrutinize Big Banks Following Wells Fargo's Scandal

"A frequent problem in investigations involving asset repossessions is that lenders don't understand service people's eligibility for protections," according to the report.

This is not the first time Wells Fargo has been accused of not adhering to the military lending law, which aims to protect soldiers from legal issues while they are away on active duty. Previously, the bank paid $28 million after being accused of improper foreclosures last year.

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Posted In: NewsLegalMediaServicemembers Civil Relief Act
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