After a series of scandals related to sales practices, Wells Fargo, one of the largest banks in the United States and the world, was fined about $3.7 billion, the largest fine yet imposed against the bank.
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One of the largest US banks fined billions of dollars for ‘fraud and manipulation’
US government regulators have agreed to fine Wells Fargo, one of the largest banks in the country and the world, approximately $3.7 billion, the largest fine ever issued against the bank, which spent years to try to rehabilitate after a series of scandals related to his sales practices.
That amount is nearly four times the previous $1 billion fine Wells Fargo paid in 2018 to cover up widespread consumer law violations.
The order issued on Tuesday by the Consumer Financial Protection Bureau required Wells Fargo to repay consumers $2 billion and imposed a $1.7 billion fine on the bank.
The bureau compiled a list of consumer finance law violations committed by the bank, which include illegal charging and interest on auto loans and mortgages, as well as the improper application of overdraft fees to savings and checking accounts. The bureau said the bank’s bad behavior affected more than 16 million customers.
Wells Fargo has been repeatedly fined by US regulators for consumer protection law violations since 2016, when its employees were found to be illegally opening millions of accounts to meet unrealistic sales goals. Since then, the bank says it has “cleaned up its business,” but has also been fined for further violations of consumer protection law.
The bank is under a Federal Reserve order that prevents it from growing further until it fixes its corporate culture issues. This order, originally issued in 2018, was initially intended to last only a year or two.
