U.S. Bancorp will repay customers $3.2 million to resolve Consumer Financial Protection Bureau claims that it misled military-service members who took part in an auto lending program. The bank's partner, Dealers' Financial Services of Lexington, Ky. will repay $3.3 million.

The money will go to more than 50,000 service members, with an average reimbursement of less than $130 per customer.

The two companies “failed to properly disclose costs associated with repaying auto loans” made to service members under U.S. Bancorp’s Military Installment Loans and Educational Services program, CFPB Director Richard Cordray said in a statement announcing the settlement.

According to the CFPB, U.S. Bancorp failed to properly disclose a fee that resulted in paying an extra $180 over the life of a 60-month loan. Dealers' Financial Services understated the costs of a vehicle service contract and insurance sold with the loans, both of which raised costs to consumers, the agency said.

The Military Installment Loans and Education Services program allows young service members with minimal credit history to finance auto purchases, with repayment debited from paychecks through the military’s allotment system, which deducts money before the rest is deposited in a bank.

U.S. Bancorp said the bank will end the program, and noted it wasn’t fined by the CFPB.

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