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Wells Fargo fees overview:
- Who: The Consumer Financial Protection Bureau ordered Wells Fargo Bank to pay $3.7 billion in compensation and penalties.
- Why: The bureau says the bank illegally charged fees and interest on auto and mortgage loans and consumer accounts.
- Where: The fine is active in the United States.
The Consumer Financial Protection Bureau (CFPB) ordered Wells Fargo Bank to pay $3.7 billion in compensation and penalties for charging illegal fees and interest on auto and mortgage loans.
The CFPB issued the consent order Dec. 20, stating that it identified multiple violations of the law in regards to Wells Fargo’s auto loan servicing.
According to the order, the bank incorrectly applied loan payments, “erroneously imposed certain fees and charges,” incorrectly repossessed customers’ vehicles and failed to refund certain unearned fees of debt cancellation products.
With respect to home mortgage servicing, Wells Fargo also violated the law, the CFPB says.
“Respondent incorrectly denied mortgage loan modifications to certain qualified borrowers,” the order states.
Wells Fargo also allegedly improperly froze or closed customer deposit accounts, improperly charged certain overdraft fees and did not always waive monthly account service fees consistent with its disclosures, according to the order.
Wells Fargo to pay $2 billion to more than 16 million accounts
Under the terms of the order, Wells Fargo must pay $2 billion to more than 16 million affected consumer accounts. The other $1.7 billion will go to the CFPB’s Civil Penalty Fund to provide relief to victims of consumer financial law violations, the order states.
“Wells Fargo’s rinse-repeat cycle of violating the law has harmed millions of American families,” CFPB Director Rohit Chopra says in a statement. “This is an important initial step for accountability and long-term reform of this repeat offender.”
Meanwhile, the U.S. Securities and Exchange Commission (SEC) and the U.S. Department of Justice (DOJ) are investigating the hiring practices at Wells Fargo.
Wells Fargo reportedly indicated in its quarterly SEC filing that the federal agencies are investigating its diversity hiring practices. The DOJ allegedly launched its investigation a few months ago, and the SEC launched its investigation more recently.
What do you think of the penalties the SEC imposed on Wells Fargo in this order? Let us know in the comments!
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800 thoughts onWells Fargo to pay $3.7B for charging illegal fees, interest on loans, accounts
I’ve had the same issues with Wells Fargo account. No one would explain it to me.
How do I join this lawsuit against Wells Fargo?
Wondering the same thing 🤔
I had a mortgage with Wells Fargo. They stopped cashing my checks and imposed late fees. Then, because the late fees were fraudulent, I refused to pay them. I tried modification, which went on for 3 years. My paperwork was always lost, and I was forced to begin the modification process over and over. I was forced to file for bankruptcy. After the bankruptcy period ended, my home was foreclosed upon and auctioned off. The auctioned price of my home was less than the sale price that I agreed to. My family of myself, 2 teenage daughters and my husband who had terminal cancer, were forced out of our home during the Christmas week of 2016. My husband passed away. My daughters and I have not recovered emotionally from the cruelty of Wells Fargo. Wells Fargo has victimized people through their fraudulent practices. My daughters and I want our home back that was illegally foreclosed upon by Wells Fargo and their unscrupulous practices! Is there an attorney out there who is not afraid to stand up to Wells Fargo and help my daughters and I? I would love to have Wells Fargo pay to move the family who is living in my house to another home, and be forced to give me my house and the title. My daughters and I miss our home.
We are pretty much going through the same thing. Wells Fargo is the worst mortgage company ever. I told my kids right out dont ever go with Wells Fargo when they bought there houses. They said definitely not we know what yous went through and are still going through.
Started receiving text messages referring to an account that I never opened.
Add Me I have account I didn’t request
Started receiving text messages
about some accounts that I had with them although I know I didn’t open an account recently with Wells Fargo.
Wells Fargo Has misused my money and set up account I did not request.
N/A
Wells Fargo opened a mortgage in my name and my property was foreclosed on in 2006! They acquired my information and researched my property and never gave me my restitution for a wrongful foreclosure!
I have a mortgage since 2010. I have been in foreclosure since 2013. From 2011- to this very day I have been through at least 5 trial modifications. Made payment on every one only to have to be told to reapply. Over and over. The last mod the banks attorney would not accept my 5th trial payment. I don’t even know where to start. There is so much more and it’s gotten worse it is unbelievable. Please add me to this
Add me
To Christopher Wilkins
We had same problem with Wells Fargo. Was 30 days from auction for foreclosure, and not our doing. We had to file a bankruptcy to save our house from them vulchers. Then we received a check for 3500 from them. That’s what we had to pay almost to attorney for bankrupt 3000. So maybe that you should look into. Loan modifications they will jerk you around until they foreclose on your home, trust me.