Wells Fargo has agreed to a $3.7 billion settlement with the Client Financial Security Bureau about customer abuses tied to mortgages, vehicle loans and overdraft fees, the regulator said Tuesday.
The lender was requested to shell out a $1.7 billion civil penalty and “additional than $2 billion in redress to buyers,” the CFPB stated in a statement.
“The bank’s unlawful perform led to billions of dollars in money damage to its shoppers and, for 1000’s of shoppers, the reduction of their cars and homes,” the agency claimed in its launch. “Customers ended up illegally assessed costs and desire fees on vehicle and mortgage loan financial loans, had their cars wrongly repossessed, and experienced payments to car and home finance loan financial loans misapplied by the bank.”
“Wells Fargo’s rinse-repeat cycle of violating the regulation has harmed thousands and thousands of American families,” Rohit Chopra, head of the CFPB, stated in the launch. “The CFPB is purchasing Wells Fargo to refund billions of dollars to individuals throughout the state. This is an significant first action for accountability and lengthy-expression reform of this repeat offender.”
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