With regard to checking accounts, mortgages, and auto loans, Wells Fargo and the Consumer Financial Protection Bureau reached a $3.7 billion settlement. Some of the misbehavior occurred as recently as this year.
The CFPB announced in a statement that the business was compelled to pay an unprecedented $1.7 billion civil penalty as well as more than $2 billion to customers with 16 million accounts. Many of the "necessary activities" connected to the settlement, according to the San Francisco-based bank, have already been finished, it was stated in a separate statement.
In its statement, the government stated that the bank's illegal actions caused its customers to suffer financial losses totaling billions of dollars and, for many of them, the loss of their homes and vehicles. Consumers' auto and mortgage loan fees and interest rates were improperly assessed, their vehicles were wrongfully repossessed, and the bank misapplied its customers' payments to their loans.
The extent of the misconduct described by the CFPB demonstrates that Wells Fargo had issues with customer service far before its 2016 crisis involving millions of bogus accounts. The fourth-largest U.S. bank by assets, Wells Fargo, does not have a sizable Wall Street operation like its competitors JPMorgan Chase and Bank of America, therefore regular Americans make up the bulk of its clientele.
Certain of these problems persisted up until recently. According to a consent agreement, the bank made errors including the misapplication of vehicle loan payments and other issues from "at least 2011 through 2022," some of which resulted in erroneous auto repossessions. Furthermore, the CFPB said that the bank committed mistakes in applications for mortgage modifications between 2011 and 2018.
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