Wells Fargo Bank, a unit of Wells Fargo (WFC), has agreed to pay more than $4.1 million to resolve allegations it illegally repossessed cars owned by members of the U.S. military, the Justice Department said on Thursday.
Federal prosecutors and the Office of the Comptroller of the Currency (OCC) are punishing Wells Fargo for alleged violations of the Service Members Civil Relief Act, Bloomberg reported, citing two people with knowledge of the investigation.
An earlier report from Bloomberg, said that the penalty could be as high as $20 million. It’s not clear if the OCC was considering levying a separate fine.
The bank, doing business as Wells Fargo Dealer Services, has also agreed to change its policies after the Justice Department alleged it repossessed 413 cars owned by service members without obtaining a court order, the department said in a news release.
The Department of Justice declined to comment. A spokesman for the OCC declined to comment on possible enforcement actions.
Wells Fargo did not immediately respond to a request for a comment.