Wells Fargo Offers Vets' Fee Refunds

Wells Fargo & Co. agreed to refund up to $10 million in fees to eligible military veterans who refinanced their mortgages with the bank. Eligible veterans who apply would receive $175 each.

Wells Fargo, the nation's largest mortgage originator, made the settlement in connection with a class-action lawsuit filed in the State Court of Troup County, Ga., alleging the bank harmed veterans through improperly high fees.

The suit claimed the bank "failed to exercise reasonable care" in assessing attorney fees according to Veterans Administration Interest Rate Reduction Refinancing Loan rules.

Veterans who refinanced with Wells Fargo between Jan. 20, 2004, and Oct. 7, 2010, are eligible for the refunds. The bank said it will contact eligible veterans by mail in about a month.

The settlement was reported late Wednesday by Fox 5 television in Atlanta.

"Since the lawsuit allegation was raised, we have diligently worked with our veteran customers who inquired about their fees, and we refunded them if there was an error in the third-party charges that were assessed," Cara Heiden, co-president of Wells Fargo Home Mortgage, said in an e-mail statement. "We hope that by settling this matter, we can demonstrate to veterans our steadfast commitment to doing right by them."

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