3 Big Banks Overcharged on VA Refis – Settlement Includes Cash Refunds

Have you refinanced a Veterans Administration (VA) loan between January 20, 2004 and October 7, 2010, and used Wells Fargo, Wachovia, or SunTrust Banks?  You could be due for a $175 refund (per loan).  A recent Georgia court case proved that Wells Fargo had been overcharging service members and veterans for their mortgage refinancing costs.  As a result, Wells Fargo has agreed to make a $175 payment to all eligible customers.   Bank officials estimate that 60,000 borrowers will be eligible for the refund, totaling nearly $10 million in payments.  Some borrowers may have refinanced more than one time and would be eligible for multiple payments.

You should be receiving a letter regarding this payment, with instructions for claiming your refund.    Letters are estimated to go out in late March or early April.    I don’t know what provisions they have made for reaching customers who no longer have an active mortgage.  If you no longer have an active mortgage, you might consider contacting them to make sure they have your correct information.

If you might be one of these customers, be sure to open your mail from your mortgage company.  Good news might be inside!

About the Author

Kate Horrell
Kate Horrell is a military financial coach, mom of four teens, and Navy spouse. She has a background in taxes and mortgage banking, and a trove of experience helping other military families with their money. Follow her on twitter @realKateHorrell.
  • DJM

    Thankyou for this article. It made me know for sure that this wasn’t a scam that came in the mail.

  • DEBORAH A MEINTS

    when should we expect our refunds?

    • KateKashman

      I have no idea, Deborah. Did you get the a letter? I would check the fine print…I would imagine that they will delay as long as possible. Good luck to you!

  • teresa

    spouse is deployed, his incentive bonus is due to be paid out, would this be tax free also?