U.S. Sen. Richard Blumenthal is leading 10 colleagues in a quest for answers on military lending from Wells Fargo in the wake of the bank’s $24 million fine for allegedly violating a federal law aimed at easing financial burdens on service members.
Blumenthal. the ranking member of the Veterans’ Affairs Committee, along with Jack Reed (D-RI), the ranking member of the Armed Services Committee, and Sherrod Brown (D-OH), the ranking member of the Banking Committee, are calling on Wells Fargo to step up compliance with the Servicemembers Civil Relief Act (SCRA).
The U.S. Department of Justice and the Office of the Comptroller of the Currency (OCC) fined Wells Fargo for the bank’s alleged violations of the SCRA. The SCRA includes provisions that prohibit the eviction of military members and their dependents from rental or mortgaged property, and the law caps interest at 6 percent on debts incurred prior to an individual entering active duty military service.
The senators are seeking answers by Oct.27 on five key questions, including an accounting of when Wells Fargo first became aware of the violations and how many military members are affected.
“Combined, these abuses indicate that Wells Fargo has actually made it more difficult and stressful for our service members and their families by violating the very rights they have fought and continue to fight so hard to secure. We are also concerned about potential compliance issues related to the Military Lending Act (MLA), including new rules that took effect on October 3,” the senators wrote to Wells Fargo CEO John Strumpf and members of the board of directors.
