International Financial Law Prof Blog

Editor: William Byrnes
Texas A&M University
School of Law

Thursday, January 3, 2019

Wells Fargo to Pay States About $575 Million to Settle Customer Harm Claims

The Wall Street Journal reported that:

Wells Fargo & Co. has agreed to pay $575 million to all 50 states and the District of Columbia to settle claims that a fake-account scandal in its retail bank and improper auto-loan and mortgage charges harmed customers.

read the story here

The Consumer Financial Protection Bureau (CFPB) fined Wells Fargo Bank, N.A. $100 million for the widespread illegal practice of secretly opening unauthorized deposit and credit card accounts. Spurred by sales targets and compensation incentives, employees boosted sales figures by covertly opening accounts and funding them by transferring funds from consumers’ authorized accounts without their knowledge or consent, often racking up fees or other charges. According to the bank’s own analysis, employees opened more than two million deposit and credit card accounts that may not have been authorized by consumers. 

Wells Fargo settlement FAQs here

https://lawprofessors.typepad.com/intfinlaw/2019/01/wells-fargo-to-pay-states-about-575-million-to-settle-customer-harm-claims.html

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