Thousands of service members received a $12 million payout from Capital One on Thursday as an apology for violating a key provision of the Servicemembers Civil Relief Act. The announcement comes after the credit giant wrongfully foreclosed on soldiers' homes, repossessed cars and failed to offer the interest rate relief provided to members of the Armed Forces, The Associated Press reports.
The payment is part of an agreement reached between Capital One and the Justice Department. Families who had their houses foreclosed upon will receive $125,000 each while those who had their car repossessed will get $10,000. The company also set up a $5 million fund for those denied benefits.
"Today's action makes clear that the Justice Department will fight for our servicemembers and use every available tool, resource and authority to hold accountable those who engage in discriminatory practices targeting those who serve," Attorney General Eric Holder said in a statement.
The Servicemembers Civil Relief Act offers a number of protections for soldiers so that they can focus more on serving the country rather than their finances. For instance, the legislation can postpone a number of payments including outstanding credit card debt, some taxes and mortgage payments.