Wells Fargo to pay $3.7 Billion in Restitution and Fines

After a sweeping investigation, on December 20, 2022 the Consumer Financial Protection Bureau (“CFPB”) announced on an order requiring banking conglomerate Wells Fargo to pay more than $2 Billion in redress to consumers and another $1.7 Billion in civil penalties for legal violations across multiple business lines. CFPB Orders Wells Fargo to Pay $3.7 Billion for Widespread Mismanagement of Auto Loans, Mortgages, and Deposit Accounts | Consumer Financial Protection Bureau (consumerfinance.gov)

The CFPB determined Wells Fargo harmed millions of consumers by repeatedly and illegally assessing fees and interest charges on auto and mortgage loans, misapplying payments to auto and mortgage loans, and adding unlawful charges, including surprise overdraft fees to checking and savings accounts.

It further concluded that over at least a 7-year period, Wells Fargo improperly denied thousands of mortgage loan modification applications, leading to many borrowers losing their home to foreclosure.

The CFPB found that Wells Fargo incorrectly applied auto loan payments, charged improper fees and interest, and wrongfully repossessed borrowers’ vehicles, affecting more than 11 million accounts.

The CFPB’s action against Wells Fargo is just one more in a LONG line of administrative actions against the bank. Some recent actions include:

In 2018 Wells Fargo entered into a consent order with the Office of the Comptroller of the Currency (“OCC”) after the OCC alleged violations of the Federal Trade Commission Act that constituted unsafe and unsound practices. Wells Fargo Bank, N.A., Cease and Desist 2018-025, April 20, 2018 (occ.gov) In  2021, the OCC assessed a $250 Million penalty for Wells Fargo’s failure to comply with the order.  OCC Assesses $250 Million Civil Money Penalty, Issues Cease and Desist Order Against Wells Fargo | OCC

In 2020, Wells Fargo agreed to pay $3 Billion to resolve potential criminal and civil liability for creating a culture where employees were so pressured to meet unrealistic sales goals that they misused customers’ identities to open millions of accounts without consent. Wells Fargo Agrees to Pay $3 Billion to Resolve Criminal and Civil Investigations into Sales Practices Involving the Opening of Millions of Accounts without Customer Authorization | OPA | Department of Justice

In September 2022 the US Dept of Labor ordered Wells Fargo to pay more than $22 Million for retaliating against a whistleblower who had reported the bank’s financial misconduct. US Department of Labor orders Wells Fargo to pay more than $22M for retaliating against executive that alleged financial misconduct | U.S. Department of Labor (dol.gov)

In May 2022 Wells Fargo Advisors agreed to pay $7 Million to settle charges by the US Securities and Exchange Commission (“SEC”) that it failed to file at least 34 suspicious activity reports in compliance with anti-money laundering laws. SEC.gov | SEC Charges Wells Fargo Advisors With Anti-Money Laundering Related Violations

If you believe your Wells Fargo loan or account was mishandled, contact KMT LAW PC for a free consultation to learn more.