Wells Fargo to Pay $3.7B Over Consumer Banking Violations

December 20, 2022 by Dan McCue
Wells Fargo to Pay $3.7B Over Consumer Banking Violations
A Wells Fargo office is shown, Wednesday, Jan. 13, 2021, in New York. (AP Photo/Mark Lennihan)

WASHINGTON — Wells Fargo has agreed to pay a total $3.7 billion to settle claims that it engaged in widespread banking violations over the last decade that harmed millions of consumers.

According to the Consumer Financial Protection Bureau, roughly $1.78 billion of the total will be collected as fines, and about $2 billion will be repaid to consumers as damages.

“Wells Fargo’s rinse-repeat cycle of violating the law has harmed millions of American families,” said CFPB Director Rohit Chopra. 

“The CFPB is ordering Wells Fargo to refund billions of dollars to consumers across the country. This is an important initial step for accountability and long-term reform of this repeat offender,” Chopra said.


As recounted in a filing by the bureau, Wells Fargo misapplied customer payments on auto loans, wrongfully repossessed some borrowers’ cars and charged overdraft fees even when customers had enough money to cover purchases they made with their bank cards.


Wells Fargo stopped the conduct this year as part of a larger effort to clean up other abusive practices stretching back a decade, a filing by the agency said.

As part of its settlement, Wells Fargo has also been repaying customers, returning improperly charged fees and offering some financial relief to those whose finances and credit ratings were hurt by the bank’s practices.

“This far-reaching agreement is an important milestone in our work to transform the operating practices at Wells Fargo and to put these issues behind us,” said Charles Scharf, Wells Fargo’s chief executive, in a written statement. 


Wells Fargo is “a different company today,” he added.

Dan can be reached at [email protected] and @DanMcCue

A+
a-

In The News

Health

Voting

Banking

March 17, 2023
by Dan McCue
President Calls for Stronger Penalties for Execs of Banks That Fail

WASHINGTON — President Joe Biden is urging Congress to give the Federal Deposit Insurance Corporation more power to punish bank... Read More

WASHINGTON — President Joe Biden is urging Congress to give the Federal Deposit Insurance Corporation more power to punish bank executives whose institutions failed due their own mismanagement or excessive risk taking. Biden’s remarks, issued as a statement from the White House, come in the wake... Read More

Class Action Suit Filed Against Silicon Valley Bank Parent

A class action lawsuit is being filed against the parent company of Silicon Valley Bank, its CEO and its chief... Read More

A class action lawsuit is being filed against the parent company of Silicon Valley Bank, its CEO and its chief financial officer, saying that company didn't disclose the risks that future interest rate increases would have on its business. The lawsuit against SVB Financial Group, CEO... Read More

Biden Tells US to Have Confidence in Banks After Collapse

NEW YORK (AP) — President Joe Biden on Monday told U.S. residents the nation’s financial systems are sound, following the... Read More

NEW YORK (AP) — President Joe Biden on Monday told U.S. residents the nation’s financial systems are sound, following the swift and stunning collapse of two banks that prompted fears of a broader upheaval. “Americans can have confidence that the banking system is safe,” he said... Read More

December 20, 2022
by Dan McCue
Wells Fargo to Pay $3.7B Over Consumer Banking Violations

WASHINGTON — Wells Fargo has agreed to pay a total $3.7 billion to settle claims that it engaged in widespread... Read More

WASHINGTON — Wells Fargo has agreed to pay a total $3.7 billion to settle claims that it engaged in widespread banking violations over the last decade that harmed millions of consumers. According to the Consumer Financial Protection Bureau, roughly $1.78 billion of the total will be... Read More

October 25, 2022
by Dan McCue
Record Number of Americans Have Bank Accounts, FDIC Says

WASHINGTON — Despite a global pandemic that stalled state and local economies for months, a record 96% of Americans had... Read More

WASHINGTON — Despite a global pandemic that stalled state and local economies for months, a record 96% of Americans had bank accounts in 2021, according to a new survey released Tuesday by the Federal Deposit Insurance Corporation. The FDIC’s “2021 National Survey of Unbanked and Underbanked... Read More

Fraud, Scam Cases Increasing on Zelle, Senate Report Finds

NEW YORK (AP) — Incidents of fraud and scams are occurring more often on the popular peer-to-peer payment service Zelle,... Read More

NEW YORK (AP) — Incidents of fraud and scams are occurring more often on the popular peer-to-peer payment service Zelle, according to a report issued Monday by the office of Sen. Elizabeth Warren, giving the public its first glimpse into the growing problems at Zelle. The... Read More

News From The Well
scroll top