The Federal Reserve Bank has announced details of its plan to issue compensation payments to 4.2 million borrowers harmed by wrongful foreclosure practices, and will begin sending checks next week.

The agreement provides $3.6 billion in cash payments to borrowers whose homes were in foreclosure process in 2009 or 2010 and whose mortgages were serviced by one of thirteen large banks. Payments will range from $300 to $125,000, with the largest amounts due to borrowers who were wrongfully foreclosed on while serving in the armed forces. Active duty servicemembers are protected by a federal law from having their homes seized while in service.

The Fed said it plans to send most of the payments by the end of April.

The settlement is the second attempt by regulators to come to an agreement to address the wrongful foreclosure practices. The original agreement came under fire after consultants hired to review the servicer’s files to determine whether they had been mishandled rung up billions in fees while borrowers’ claims were unaddressed. The Fed and the Office of the Comptroller of the Currency junked that agreement earlier this year, instead formulating the current plan of direct payments. Three of the original thirteen servicers, OneWest, Everbank, and GMAC Mortgage, declined to sign onto the renegotiated settlement. Their files are still being reviewed.

In most cases, the Fed said in a statement, borrowers will receive a letter with an enclosed check sent by the paying agent Rust Consulting, Inc. Rust had previously sent postcards to the 4.2 million borrowers notifying them of their eligibility to receive payment under the agreement.

Accepting a payment will not prevent borrowers from taking further legal action.