Noteboom The Law Firm

Wells Fargo Refunding $10 Million To Veterans

March 1, 2011 - Wells Fargo improperly charged veterans thousands of dollars in refinancing fees. Up to 60,000 veterans and their families across the country were overcharged when they refinanced their VA Home Loans with the bank. Now the bank has agreed to pay back a large chunk of those fees as a result of a class-action lawsuit filed in Troup County, GA.

The lawsuit claimed the bank "failed to exercise reasonable care" in charging fees determined to be unreasonable and improper, which violated the Department of Veterans Affairs' (VA) Interest Rate Reduction Refinancing Loan rules. Those rules protect both active-duty soldiers and veterans from being foreclosed upon, as well as being hit with certain fees and interest rates. The lawsuit was spurred by the bank's failure to adhere to these rules.

Marking another victory for veterans, Wells Fargo entered into a settlement in which they will pay up to 60,000 veterans up to a total $10 million. Not all veterans are entitled to the refunded fees. The payments will be issued to any and all veterans who refinanced their VA Home Loans between January 20, 2004 and October 7, 2010. Each veteran will receive $175 each.

The settlement comes at the end of a year-long battle of veterans accusing banks of overcharging veterans with VA Home Loans. Checks should start to be mailed out last week.