CFPB orders Wells Fargo to repay $2B to customers as part of $3.7B settlement
USA TodayDec 25, 2022
Wells Fargo to Pay $3.7B Settlement for Illegal Practices
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The Facts
Wells Fargo on Tuesday agreed to pay $3.7B to settle charges that it harmed customers by charging illegal fees and interest on auto loans and mortgages as well as assigning incorrect overdraft fees on checking and savings accounts.
The Consumer Financial Protection Bureau ordered Wells Fargo to pay more than $2B in redress to consumers and a $1.7B civil penalty for legal violations across multiple products the financial company offered.
The Spin
Narrative A
Wells Fargo has continued to abuse its customers with no genuine remorse. While the Consumer Financial Protection Bureau should be applauded for levying its largest fine ever, individuals responsible for Wells Fargo’s corruption should also be targeted. Regulators need to have serious conversations about breaking up the financial behemoth.
Narrative B
Most of the dust has settled around Wells Fargo’s long-running issues with regulators. While there still are problems to resolve, this hefty settlement should be the last major obstacle in the way of the bank’s rebound. The company has completed its list of required actions and is looking to the future.
