Wells Fargo must repay $2 billion to customers for charging illegal fees and interest

Wells Fargo has settled consumer abuse claims with authorities for $3.7 billion related to car loans, mortgages, and checking and savings accounts.

For some clients, the bank’s misconduct had extremely serious repercussions, according to the Consumer Financial Protection Bureau.

According to the CFPB’s ruling, Wells Fargo improperly seized vehicles from their owners and caused borrowers to lose their homes. In addition, overdraft fees on the bank accounts of other customers were incorrectly assessed.

The director of the Consumer Financial Protection Bureau, Rohit Chopra, said, “Wells Fargo’s rinse-repeat cycle of violating the law has harmed millions of American families.” The FBI claims the illegal activity dates back at least ten years and may have continued into 2018. Chopra said that the Consumer Financial Protection Bureau has mandated that Wells Fargo return billions of dollars to customers around the nation.

Billions in damages to be paid to consumers by Wells Fargo

Wells Fargo will distribute approximately two billion dollars to compensate the millions of consumers who were negatively affected. In addition, an additional $1.7 billion penalties will be paid by the bank.

Customers who had their automobiles improperly repossessed would be compensated at least $4,000, and maybe more, according to a CFPB official speaking on the condition of anonymity.

The bank has suffered several high-profile scandals over the previous decade, including the discoveries made in 2016 by NPR that, to reach sales objectives, bank workers had secretly opened millions of checking, debit, and credit card accounts for clients without their knowledge.

According to CFPB director Chopra, “for accountability and long-term reform of this chronic offender,” this new sanction is crucial.

To comply with the CFPB’s ruling, Wells Fargo must contact affected customers eligible for compensation. According to the CFPB, aggrieved customers of Wells Fargo and other financial institutions may file complaints with the agency through the CFPB’s website.