A new lawsuit accuses banking giant Wells Fargo of overcharging thousands of customers on credit card interest rates and fees for more than a decade.
The class action lawsuit, filed by plaintiffs Carmin Nowlin, Tamika Haley and Jesus Rodriguez, alleges the bank charged active US military service members interest rates and fees that were above levels set by the Servicemembers Civil Relief Act (SCRA).
The SCRA ensures that any debts a service member incurred before being called to active duty will have their interest rates reduced to 6%. This reduction applies from the date of deployment and lasts throughout the entire period of active duty. Additionally, banks are required to permanently forgive interest over 6%, under the act.
According to the plaintiffs, Wells Fargo specifically marketed itself to service members – particularly those who were being deployed overseas – and quietly overcharged for more than a decade.
“Defendant breached its statutory and contractual duties to America’s fighting forces by charging interest rates and fees that were too high, allowing unlawful charges to improperly inflate servicemembers’ principal balances, and charging compound interest on these inflated balances. Defendant then concealed overcharges from the thousands of military families victimized by Defendant’s practices...
Due to Defendant’s misrepresentations to Plaintiffs and class members and concealment of SCRA violations and overcharges, Plaintiffs and class members did not discover, and had no reasonable opportunity to discover, the SCRA violations until 2022.
Defendant’s violations at issue were self-concealing, which is evidenced, in part, by the fact that they continued the nationwide practice of overcharging active military servicemembers for more than a decade.”
Wells Fargo has not released a statement on the allegations.
The bank has faced several lawsuits and complaints in recent months, including a customer who says the banking giant left her hanging for seven months after thousands of dollars was stolen from her account.
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebook and Telegram
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
- SEO Powered Content & PR Distribution. Get Amplified Today.
- PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
- PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
- PlatoESG. Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
- PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
- Source: https://dailyhodl.com/2024/03/30/wells-fargo-accused-of-overcharging-thousands-of-customers-concealing-predatory-practice-for-more-than-10-years-new-lawsuit/
