Regulators Hit Wells Fargo, With Massive Fine for, Consumer Law Violations.
On December 20, regulators in the United States ordered consumer banking giant Wells Fargo to pay $3.7 billion in fines and refunds to customers.
On December 20, regulators in the United States ordered consumer banking giant Wells Fargo to pay $3.7 billion in fines and refunds to customers.
ABC reports that it is the largest fine to date against Wells Fargo, which has spent years trying to recover from a series of scandals.
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ABC reports that it is the largest fine to date against Wells Fargo, which has spent years trying to recover from a series of scandals.
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In 2018, the bank was ordered to pay $1 billion to cover widespread consumer law violations.
Now, the Consumer Financial Protection Bureau ordered Wells to pay $2 billion to consumers in addition to a $1.7 billion penalty against the bank.
Now, the Consumer Financial Protection Bureau ordered Wells to pay $2 billion to consumers in addition to a $1.7 billion penalty against the bank.
The regulator listed a number of consumer financial law violations, including illegal fees and interest on auto loans and mortgages.
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The violations also included incorrectly applied overdraft fees on savings and checking accounts.
According to the bureau, the violations impacted over 16 million customers.
ABC reports that Wells Fargo has repeatedly been the target of U.S. regulators since 2016, when Wells employees were found to have opened millions of accounts illegally.
ABC reports that Wells Fargo has repeatedly been the target of U.S. regulators since 2016, when Wells employees were found to have opened millions of accounts illegally.
Despite efforts to repair their reputation, the bank has repeatedly been fined for additional violations of consumer protection law.
ABC reports that the bank remains under a Federal Reserve order banning the company from growing until regulators deem that corporate culture problems have been resolved.
