The federal regulator Consumer Financial Protection Bureau ordered Wells Fargo on Tuesday to pay $1.7 billion for widespread mismanagement.
Wells Fargo Ordered To Pay $1.7 Billion
Wells Fargo made a big headline this week after the Consumer Financial Protection Bureau released its order against the company. The CFPB ordered that it needs to pay $1.7 billion for widespread mismanagement over multiple years that harmed over 16 million consumers.
In a published article in Yahoo News, the CFPB said that Wells Fargo committed the following illegal activities:
- Repeatedly misapplying loan payments
- Wrongfully foreclosing on homes
- Illegally repossessing vehicles
- Incorrectly assessing fees and interest
- Charging surprise overdraft fees
Rohit Chopra, the CFPB’s director, said, “Wells Fargo’s rinse-repeat cycle of violating the law has harmed millions of American families.”
READ ALSO: Big Pandemic Stimulus Bill: Biden’s Administration To Cut Off Homelessness By 25% in 2 Years
Wells Fargo as Repeat Offender
Chopra described Wells Fargo as a “repeat offender” and “corporate recidivist,” She also added that the $1.7 billion fine ordered on Tuesday was just an initial step towards holding the bank accountable.
She also told the reporters that the new settlement should not be read as a signal that Wells Fargo has moved past its long-standing problems or that the CFPB’s work is done here.
Meanwhile, Wells Fargo CEO Charlie Scharf said in the statement that, “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. 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.”
