Wells Fargo ordered to pay $3.7 billion for mismanaging customer funds
![Sign at a Wells Fargo bank branch.](https://cdn.mos.cms.futurecdn.net/Nrsrm8BE6xkQGnLEyNUTvm-415-80.jpg)
Banking giant Wells Fargo was ordered by federal agencies on Tuesday to pay $3.7 billion for allegedly mismanaging millions of auto loans, mortgages, and deposit accounts.
The Consumer Financial Protection Bureau said in a statement that Wells Fargo will pay $2 billion in repayments to consumers, and also slapped the company with a $1.7 billion fine for violating consumer protections.
According to the CFPB, Wells Fargo had been charging its consumers using a variety of illegal financial tactics, including assessing illegal fees and interest charges on loans and mortgages, wrongfully having customers' cars repossessed, and misapplying various payments on loans.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
![https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516.jpg](https://cdn.mos.cms.futurecdn.net/flexiimages/jacafc5zvs1692883516-320-80.jpg)
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
"The bank's illegal conduct led to billions of dollars in financial harm to its customers and, for thousands of customers, the loss of their vehicles and homes," the CFPB said. "According to today's enforcement action, Wells Fargo harmed millions of consumers over a period of several years, with violations across many of the bank's largest product lines."
According to the complaint, more than 16 million Wells Fargo customers were directly affected by the company's actions.
This is not the first time that Wells Fargo has been in hot water with financial regulators, as The Associated Press noted that the company has been repeatedly sanctioned for similar charges going back to 2016.
"We and our regulators have identified a series of unacceptable practices that we have been working systematically to change," Wells Fargo CEO Charlie Scharf said in a statement. "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."
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Justin Klawans has worked as a staff writer at The Week since 2022. He began his career covering local news before joining Newsweek as a breaking news reporter, where he wrote about politics, national and global affairs, business, crime, sports, film, television and other Hollywood news. Justin has also freelanced for outlets including Collider and United Press International.
-
Paraguay's dangerous dalliance with cryptocurrency
Under The Radar Overheating Paraguayans are pushing back over power outages caused by illegal miners
By Chas Newkey-Burden, The Week UK Published
-
The Week contest: Tattoo prediction
Puzzles and Quizzes
By The Week US Published
-
Escape seaside in Newport, Rhode Island
The Week Recommends For the quintessential New England experience, head to the Classic Coast
By Catherine Garcia, The Week US Published
-
The precipitous fall of the Japanese yen
Under the Radar The Yen recently below 160 to the dollar, its lowest value in more than 30 years
By Justin Klawans, The Week US Published
-
It's not your imagination — restaurant reservations are becoming harder to get
In the Spotlight Bots, scalpers and even credit card companies are making reservations a rare commodity
By Justin Klawans, The Week US Published
-
A massive copper shortage is on the horizon
Under the Radar It is estimated that mines will only meet 80% of copper needs by 2030
By Justin Klawans, The Week US Published
-
Epoch Times CFO charged with money laundering
Speed Read Weidong "Bill" Guan stands accused of laundering $67 million
By Peter Weber, The Week US Published
-
FDIC chair out after toxic work culture report
Speed Read The report revealed a trend of sexual harassment and discrimination at the Federal Deposit Insurance Corporation
By Peter Weber, The Week US Published
-
How did Starbucks 'fall from grace'?
The Explainer The coffee giant faces lower quarterly sales. Is it the economy, or have the drinks grown stale?
By Joel Mathis, The Week US Published
-
How Wall Street and Endless Shrimp may have killed Red Lobster
Under the Radar The company's shrimp deal may have worked a little too well
By Justin Klawans, The Week US Published
-
Downtown St. Louis is in a real estate 'doom loop'
Under the Radar The city is rife with abandoned buildings and vacant lots, with its real estate market in dire straits
By Justin Klawans, The Week US Published