: Wells Fargo ordered to pay $3.7 billion for alleged mismanagement of auto, mortgages and deposit accounts

by | Dec 20, 2022 | Stock Market

The Consumer Financial Protection Board on Tuesday said it is requiring Wells Fargo & Co. to pay $3.7 billion as a result of alleged widespread mismanagement of auto loans, mortgages and deposit accounts. The CFPB said Wells Fargo “repeatedly misapplied loan payments, wrongfully foreclosed on homes and illegally repossessed vehicles, incorrectly assessed fees and interest, charged surprise overdraft fees, along with other illegal activity affecting over 16 million consumer accounts.”

Wells Fargo
WFC,
-1.08%
has been ordered to pay more than $2 billion in redress to consumers in addition to a $1.7 billion civil penalty for legal violations. “Consumers were illegally assessed fees and interest charges on auto and mortgage loans, had their cars wrongly repossessed, and had payments to auto and mortgage loans misapplied by the bank,” the CFBP said. Wells Fargo did not admit wrongdoing as part of the settlement. Wells Fargo CEO Charlie Scharf said the settlement marks an “important milestone in our work to transform the operating practices of Wells Fargo and to put these issues behind us.” As a result of the settlement, the CFPB will terminate a 2016 consent order, Wells Fargo said. The settlement will also provide clarity and a path forward for termination of a 2018 consent order and will underscore that the CFPB “recognizes recent acceleration of efforts,” the bank said. “The CFPB recognized that since 2020, the company has accelerated corrective actions and remediation, including to address the matters covered by today’s settlement,” the bank said in a statement. Wells Fargo warned it wi …

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