Wells Fargo settles with CFPB over consumer abuses for $3.7 billion

Wells Fargo agreed to a $3.7 billion deal with the CFPB over checking account, mortgage, and auto loan practices, some of which happened this year.

CFPB: The business must pay a record $1.7 billion civil penalty and more than $2 billion to 16 million consumers. The San Francisco bank stated several "necessary actions" were already undertaken.

“The bank's illegal activity caused billions in financial harm to its customers and, for thousands, the loss of their automobiles and homes,” the agency stated. The bank fraudulently charged fees and interest on auto and mortgage loans, repossessed cars, and misapplied loan payments.

The magnitude of Wells Fargo's malfeasance revealed by the CFPB goes beyond its 2016 scandal involving millions of bogus accounts. Wells Fargo, the fourth-largest U.S. bank by assets, has a limited Wall Street business, so average Americans are its main customers.

Some of these problems persist. The bank misapplied auto loan payments and other other irregularities from 2011 through 2022, according to a settlement decree. CFPB stated the bank made errors in mortgage modification applications from 2011 to 2018.

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