- Title: Wells Fargo ordered to pay $3.7 bln for mismanagement
- Date: 20th December 2022
- Summary: NEW YORK, NEW YORK, UNITED STATES (DECEMBER 20, 2022) (REUTERS) (SOUNDBITE) (English) SYSTEMATIC VENTURES, CEO, MAX WOLFF, SAYING: "So, he's certainly an impressive guy and has been tenacious. And I think what the public mostly wants is a fairly tenacious set of regulators, especially with regard to our larger financial institutions, which are still rehabilitating their re
- Embargoed: 3rd January 2023 18:38
- Keywords: $3.7 billion CFPB Consumer Financial Protection Bureau Rohit Chopra U.S. consumer watchdog Wells Fargo accounts loans mortgages widespread mismanagement
- Location: VARIOUS
- City: VARIOUS
- Country: US
- Topics: Company News Markets,Economic Events,North America
- Reuters ID: LVA00B802120122022RP1
- Aspect Ratio: 16:9
- Story Text: Wells Fargo has agreed to pay $3.7 billion to settle charges from a U.S. consumer watchdog over widespread mismanagement of automobile loans, mortgages, and deposit accounts.
The Consumer Financial Protection Bureau (CFPB) has ordered Wells Fargo Bank to pay a $1.7 billion civil penalty and another $2 billion to redress more than 16 million consumer accounts affected by the numerous violations, it said in a statement.
The bank illegally assessed fees and interest charges on auto and mortgage loans, had cars "wrongly repossessed" and charged unlawful surprise overdraft fees, among other issues, CFPB said.
Wells Fargo said in a statement that the "broad-reaching settlement" will resolve issues that have been outstanding for several years, and noted it has "accelerated corrective actions and remediation" since 2020.
The steep fine for Wells Fargo is the latest in a series of actions that underscore the CFPB's more aggressive posture under President Joe Biden's administration.
Director Rohit Chopra has said the bureau is looking to hold big companies more accountable for repeated misconduct.
(Production: Aleksandra Michalska) - Copyright Holder: FILE REUTERS (CAN SELL)
- Copyright Notice: (c) Copyright Thomson Reuters 2022. Open For Restrictions - http://about.reuters.com/fulllegal.asp
- Usage Terms/Restrictions: None