Capital One agreed to pay about $12 million over violations of servicemembers' legal protections

Summary

The U.S. Department of Justice reached an approximately $12 million settlement with Capital One in July 2012 to resolve allegations that the bank violated the Servicemembers Civil Relief Act. DOJ alleged conduct including wrongful foreclosures, improper repossessions of motor vehicles, wrongful default judgments, improper denials of the statutory six-percent interest-rate cap and insufficient interest-rate benefits on protected accounts. The settlement required approximately $7 million in damages to affected servicemembers and a $5 million fund for servicemembers who did not receive appropriate SCRA benefits, together with policy reforms designed to prevent future violations. Primary source: https://www.justice.gov/archives/opa/pr/justice-department-reaches-12-million-settlement-resolve-violations-servicemembers-civil