Consumer Financial Protection Bureau (CFPB) officials have detailed an enforcement order against Wells Fargo Bank for
mismanagement of auto loans, mortgages, and deposit accounts.
The agency indicated the financial institution will pay over $2 billion in redress to consumers and a $1.7 billion civil penalty for legal violations across several of its largest product lines.
“Wells Fargo’s rinse-repeat cycle of violating the law has harmed millions of American families,” CFPB Director Rohit Chopra said. “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.”
The CFPB alleged consumers were illegally assessed fees and interest charges on auto and mortgage loans, in addition to having their cars wrongly repossessed and having payments to auto and mortgage loans misapplied by the bank.
Additionally, the agency alleged Wells Fargo charged consumers unlawful surprise overdraft fees and applied other incorrect charges to checking and savings accounts – noting the $1.7 billion fine will go to the CFPB’s Civil Penalty Fund and be used to provide relief to victims of consumer financial law violations.
Per the CFPB, the agency’s investigation determined Wells Fargo violated the Consumer Financial Protection Act by engaging in unfair and deceptive acts and practices.
The CFPB extended gratitude to the public who submitted complaints via the agency’s complaint system across Wells Fargo product lines, as well as the Office of the Comptroller of the Currency and the Federal Reserve Board of Governors.