Capital One To Pay Out $12M For Military Lending Behavior
A Capital One settlement in the amount of $12 million will be paid to resolve alleged violations against military families, the US Justice Department has announced.
Capital One’s settlement is only one instance of the company landing itself in the news in recent weeks regarding practices of questionable legality, as earlier this month, the company agreed to settle with customers in the amount of $150 million due to third-party practices which may have not been in line with regulations.
The last Capital One settlement stemmed from accusations of “deceptive marketing and billing practices” made by third-party vendors associated with Capital One accounts, such as aftermarket payment protection plans and entertainment deals offered through the contractors.
But the more recent Capital One settlement is about the company’s direct dealings with customers, specifically, servicemen and their families. Under its terms, servicemen who had homes or cars unlawfully seized by Capital One will be allocated $7 million, while military borrowers who were not afforded adequate protection have had $5 million set aside.
US Justice Department Attorney General Eric Holder addressed the Capital One settlement in a statement, saying:
“Today’s action makes clear that the Justice Department will fight for our servicemembers and use every available tool, resource and authority to hold accountable those who engage in discriminatory practices targeting those who serve.”
Under the terms of the settlement, which the US Justice Department indicated was one of the most comprehensive to date, Capital One did not admit any wrongdoing in its treatment of servicemen. Capital One’s settlement was obtained with full cooperation from the company, the US DOJ confirmed.