December 20, 2022
Wells Fargo will pay a $1.7 billion penalty, and more than $2 billion in consumer restitution, following findings by the CFPB that the bank engaged in unlawful conduct including the imposition of improper fees and interest charges on auto and mortgage loans, misapplication of payments on such loans, and the imposition of unlawful surprise overdraft fees. Wells Fargo’s failures in its servicing of auto loans resulted in the wrongful repossession of borrowers’ vehicles, and its improper denial of mortgage modifications led to some customers losing their homes to wrongful foreclosures. According to the CFPB, the bank knew about problems in its account management and servicing for years before it took steps to correct them. CFPB
Tagged in: Financial and Investment Fraud, Financial Institution Fraud,