On August 2, a proposed class of former and current servicemembers filed a memorandum in the U.S. District Court for the Eastern District of North Carolina proposing an unopposed settlement agreement between the class and the defendant, a national bank. The plaintiffs had alleged that the defendant bank failed to apply reduced interest rates to credit card accounts and other loans since 2009, as required by the Servicemembers Civil Relief Act (SCRA), the Military Lending Act (MLA), and the bank’s program, among other violations. Although the OCC, by consent order, had previously required the defendant bank to remediate the issue, the class argued that such remediation did not fully compensate the class.

The proposed settlement would provide approximately $64.2 million in compensation to the class members. Named plaintiffs will receive $20,000 each for their service, and class counsel may request 27.5 percent of the settlement amount for fees and expenses. The defendant denies all allegations of wrongdoing.