Bank of America has been sued by military veterans who say the bank charged them excessive interest rates while they served in Iraq, the Triangle Business Journal reported.
Federal law prohibits banks from charging active-duty service members rates higher than 6%. In the lawsuit, at least three service members allege they informed Bank of America of their deployment to Iraq and the bank failed to reduce their rates.
They claim that after they discovered the erroneous charges, the bank sent them checks that appeared to be junk mail, causing the checks to be thrown away.
The lawsuit was filed in U.S. District Court for the Eastern District of North Carolina. The plaintiffs accused B of A of violating the Servicemembers Civil Relief Act and other laws. They seek class certification.
"We honor the service of our armed forces and are committed to serving them as well as they serve us," Lawrence Grayson, a B of A spokesman, said in an emailed statement. "After industry-wide shortfalls were identified several years ago, we put in place leading capabilities and a dedicated team available around the clock to service members around the world. We will continue to do all we can to meet the unique needs of our military customers."