Capital One Settles Consumer Fraud Lawsuit for $12M

The U.S. Department of Justice announced that Capital One Financial Corp. agreed to pay $12 million to resolve claims of violations against military families in a consumer fraud lawsuit.

The company will pay $7 million to servicemembers whose homes or motor vehicles were unlawfully seized, according to Bloomberg. It will also pay $5 million to military borrowers who did not receive proper benefits on credit-card accounts and consumer loans.

Regulators and lawmakers have put a spotlight on banks’ treatment of servicemembers amid the wave of foreclosures after the 2008 credit crisis, investigating potential violations of the Servicemembers Civil Relief Act, which stops seizure of homes owned by active military members and limits the interest rates they can be charged, according to Bloomberg.

If you or a loved one has been wronged by consumer fraud, contact Sokolove Law for a free legal consultation and to find out if a consumer fraud lawyer may be able to help you. For legal help, call (800) 581-6358.

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