Wells Fargo & Co., reeling from weeks of pummeling over fraudulent customer accounts, was sanctioned by the Justice Department over improperly repossessing cars owned by members of the military, Bloomberg News reported today. Federal authorities are punishing the San Francisco-based lender for as many as 413 alleged violations of the Servicemembers Civil Relief Act, according to a statement yesterday from the Justice Department, which said that the bank agreed to pay more than $4 million to compensate borrowers involved in unlawful repossessions spread over seven years. The bank’s regulator, the Office of the Comptroller of the Currency, also fined the company $20 million for a decade of transgressions, the agency said. “Wells Fargo Bank unlawfully repossessed hundreds of servicemembers’ cars without the proper process, and the bank will now rightfully pay for its violations,” Bill Baer, the Justice Department’s No. 3 official, said in a statement. Wells Fargo, which doesn’t admit or deny the allegations, is accused of engaging in “a pattern of unlawful repossessions” from 2008 to 2015 in the DOJ settlement, which still needs approval in federal court in Los Angeles. In most cases, firms must obtain court orders before seizing vehicles from soldiers, sailors, airmen and Marines who are delinquent on their loans.
