Hyundai, Wells Fargo, others face class actions related to veterans, military

Military class action lawsuits overview: 

• Who: Consumers recently filed class action lawsuits against Synchrony Bank, Ally Financial and Wells Fargo. 
• Why: The lawsuits involve unlawful acts against military servicemembers, including alleged violations of the Servicemembers Relief Act. 
• Where: The class action lawsuits were filed in U.S. federal courts.

Consumers recently filed class action lawsuits involving current and former military servicemembers against Wells Fargo, Synchrony Bank and Ally Financial. 

The complaints involve alleged violations of the Servicemembers Relief Act. 

Synchrony Bank penalizes those who leave active duty, class action claims

A pair of military veterans filed a class action lawsuit against Synchrony Bank earlier this month over claims the financial institution imposes an interest rate penalty on servicemembers and veterans who leave active duty. 

The class action lawsuit claims Synchrony promises to provide veterans with a 0% interest rate on outstanding balances but penalizes them by increasing interest and fees once they leave active duty. 

“Rather than permanently forgiving the interest and fees, Synchrony retroactively takes back this benefit by imposing an interest rate penalty on servicemembers after they leave active duty and return to civilian life,” the Synchrony Bank class action says. 

The pair of veterans want to represent a nationwide class of all persons who, on account of their military service, requested and/or received a reduced interest and/or fee benefit from Synchrony Bank on an interest-bearing obligation.  

Class action alleges Ally Financial fails to let military terminate motor vehicle leases

A staff sergeant in the U.S. Marine Corps filed a class action lawsuit against Ally Financial last month over claims the company breached its duty with military servicemembers by failing to let them terminate their motor vehicle leases. 

The class action lawsuit claims Ally Financial would not allow the servicemember to terminate his motor vehicle lease, despite having the appropriate documentation to do so. 

“Defendant knowingly breached the duties it owes to servicemembers when it refused to permit plaintiff to terminate his motor vehicle lease, despite his proper submission of the appropriate documentation,” the Ally Financial class action says. 

The staff sergeant wants to represent a nationwide class of U.S. military servicemembers who properly requested to terminate a motor vehicle lease under the SCRA but had their termination denied by Ally. 

Wells Fargo interest rates too high for active duty military, class action claims

A trio of current and former active duty military filed a class action lawsuit against Wells Fargo in March over claims the bank charged active duty military members interest rates and fees that violated the SCRA by being too high. 

The class action lawsuit argues Wells Fargo also allowed illegal charges to “improperly inflate” the principal balances of servicemembers,and that the bank would go on to charge compound interest on the balances. 

Wells Fargo also allegedly concealed overcharges that went undiscovered until “misleading correspondence and payment checks” were sent to some military families in 2022, the Wells Fargo class action claims. 

“These violations caused damage to servicemembers, including the miscalculation of principal, interest, payoff amounts, and improper imposition of interest, fees and other charges,” the Wells Fargo overcharge class action says. 

The group wants to represent a nationwide class of persons who received a reduced interest and/or fee benefit from Wells Fargo on an interest-bearing obligation as a result of an obligor’s military service since Jan. 1, 2006. 

Hyundai agrees to pay $300,000+ over unlawful vehicle repossession claims

In addition to the class action lawsuits, Hyundai Capital America recently agreed to pay nearly $334,000 in May to resolve claims the company illegally repossessed more than two dozen vehicles owned by military servicemembers. 

The U.S. Department of Justice announced the settlement. The government claimed Hyundai violated the SCRA, which requires an automaker to obtain a court order prior to repossessing the vehicle of a military member. 

Hyundai’s financing arm will pay $10,000 to each servicemember whose vehicle was reclaimed without a court order along with nearly $75,000 to the government. 

Are you a military servicemember who has been affected by a class action lawsuit or settlement? Let us know in the comments.

Read About More Class Action Lawsuits & Class Action Settlements:

• FTC refunds | May 2024
• Floyd protesters file civil rights class action against Ft. Lauderdale
• TikTok, DOJ ask court to fast-track ban challenges
• EPA warns majority of drinking water systems vulnerable to cyberattack