DOJ Reportedly Investigates Wells Fargo

Wells Fargo & Co. is reportedly facing a Department of Justice investigation regarding the possible improper repossession of cars owned by members of the military, a violation of the Servicemembers Civil Relief Act, according to a published report.

In a similar case announced Monday, HSBC Finance Corp., which has not originated auto loans since it sold its car lending operations to Santander Consumer USA in 2010, agreed to pay $434,500 for repossessing 75 cars owned by servicemembers without obtaining the necessary court orders from 2008 to 2010.

The Justice Department also filed a lawsuit in the Eastern District of Michigan in late July, to recover damages from the COPOCO Community Credit Union for similar repossession allegations.

Both Wells Fargo and a DOJ spokesman declined to comment on the current investigation, according to the report.

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