Service members and veterans recently filed class action lawsuits against companies Wells Fargo, Synchrony Bank and Ally Financial. These lawsuits involve the alleged violation of the Servicemembers Civil Relief Act (SCRA).
Recently, a pair of military veterans led a class action lawsuit against Synchrony Bank. They claimed that the bank imposed an interest penalty to veterans and service members who leave active duty service.
Synchrony Bank once promised to provide them a 0% interest rate on existing balances but penalized them by increasing fees and interest rates once they left active duty military service. This pair represents a nationwide wide range of affected military personnel who requested a reduced interest rate as mandated by their SCRA rights.
Meanwhile, a US Marine Corps staff sergeant filed a class action lawsuit against Ally Financial. The sergeant claimed that the company didn’t respect their SCRA rights to have vehicle leases revoked without facing penalties.
A trio of current and former service members also filed a class action lawsuit against Wells Fargo. They claimed that the bank had overcharged interest rates, violating the federal law. According to the SCRA, active duty members are entitled to a six percent interest rate limit for pre-service debt.
Wells Fargo is said to have hidden overcharges that weren’t discovered until “misleading correspondence and payment checks” were issued to military families in 2022.
Aside from these class lawsuits, Hyundai Capital America recently agreed to pay nearly $334,000. They paid this amount to resolve the case that accused them of illegally repossessing over 20 vehicles owned by active duty service members.
The SCRA mandates that companies aren’t allowed to repossess personal property of active duty service members without securing a court order.
In line with this, Hyundai Capital America is to pay $10,000 to each service member involved in the case alongside almost $75,000 to the government.
When it comes to cases that involve violation of the SCRA, verifying one’s military status is a must. This is where SCRACVS can be of service. Sign up today to learn more.