Wells Fargo Pays $3.7 Billion in Settlement
Wells Fargo is facing down a hefty settlement and fine because the bank mismanaged accounts, including auto loans.
The company is settling with the Consumer Financial Protection Bureau for $3.7 billion dollars. That includes a $1.7 billion fine and $2 billion for redress for customers.
“Wells Fargo’s rinse-repeat cycle of violating the law has harmed millions of American families,” CFPB Director Rohit Chopra said in a statement. “The CFPB is ordering Wells Fargo to refund billions of dollars to consumers across the country. This is an important initial step for accountability and long-term reform of this repeat offender.”
This all goes back to 2016 -- the bank has been plagued by scandals since that year. It all started with Wells Fargo opening millions of fake accounts under customers' names without their permission. Since then, two CEOs have been booted and the Federal Reserve capped Wells Fargo's assets.
“We and our regulators have identified a series of unacceptable practices that we have been working systematically to change and provide customer remediation where warranted,” Wells Fargo CEO Charlie Scharf said in a statement. “This far-reaching agreement is an important milestone in our work to transform the operating practices at Wells Fargo and to put these issues behind us.”
Wells Fargo projects a pretax operating loss of $3.5 billion for the fourth quarter of this year.
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Tim Healey grew up around the auto-parts business and has always had a love for cars — his parents joke his first word was “‘Vette”. Despite this, he wanted to pursue a career in sports writing but he ended up falling semi-accidentally into the automotive-journalism industry, first at Consumer Guide Automotive and later at Web2Carz.com. He also worked as an industry analyst at Mintel Group and freelanced for About.com, CarFax, Vehix.com, High Gear Media, Torque News, FutureCar.com, Cars.com, among others, and of course Vertical Scope sites such as AutoGuide.com, Off-Road.com, and HybridCars.com. He’s an urbanite and as such, doesn’t need a daily driver, but if he had one, it would be compact, sporty, and have a manual transmission.
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