Wells Fargo to Pay $1 Billion to Settle Claims of Mortgage, Auto-Loan Abuses
Wells Fargo agreed to pay $1 billion to the Consumer Financial Protection Bureau and Office of the Comptroller of the Currency to settle allegations that the bank made “improper charges to consumers in its mortgage and auto-lending businesses,” according to The Wall Street Journal. The bank is suspected of “charging improper fees” in its mortgage-lending business and “selling unwanted insurance products” to customers with auto loans. The bank also agreed to “offer restitution” to customers as part of the settlement. This is the largest bank penalty in the Trump administration thus far. Wells Fargo was also caught and punished for opening dummy accounts without customers’ consent earlier this year.