Wells Fargo & Co. will pay $175 to any eligible veteran who had a Department of Veterans Affairs Loan refinanced between Jan. 20, 2004, and Oct. 7, 2010, the bank said Tuesday.
The move comes as part of a court settlement in a Georgia lawsuit that alleged the bank overcharged active-duty military personnel when they executed the refinances. Federal law protects active-duty military members from foreclosure and high interest rates.
Wells Fargo will alert eligible households with letters. The bank could pay out up to a total of $10 million, it said.
This marks the second major concession by big banks to military families this year. Last month, JPMorgan Chase & Co. refunded $2 million to 4,000 servicemembers who'd been forced to pay high interest rates.