The Justice Department says Capital One has agreed to pay $12 million to resolve allegations the bank violated special protections in federal law for members of the military.

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The government says Capital One wrongfully foreclosed on some homes and improperly repossessed some cars. In addition, the government says the bank obtained wrongful court judgments against some service members and improperly denied interest rate relief on some credit card and car loans.

In a settlement under the Servicemembers Civil Relief Act, Capital One will pay at least $125,000 to each service member whose home was unlawfully foreclosed upon and at least $10,000 to each service member whose vehicle was unlawfully repossessed.

Capital One will provide $5 million to service members denied appropriate benefits on credit card accounts, auto and consumer loans.

(Copyright 2012 by The Associated Press.  All Rights Reserved.)

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