BUSINESS + ECONOMY

Wells Fargo to pay $3.7B over consumer loan violations

Dec 20, 2022, 7:31 AM | Updated: Jan 5, 2023, 3:03 pm
Wells Fargo...
(Photo: Matt Rourke / Deseret News)
(Photo: Matt Rourke / Deseret News)

WASHINGTON (AP) — Consumer banking giant Wells Fargo was ordered to pay $3.7 billion in fines and refunds to customers by U.S. government regulators, the largest fine to date against the bank, which has spent years trying to rehabilitate itself after a series of scandals tied to its sales practices.
The amount is nearly quadruple the previous $1 billion penalty that Wells Fargo paid in 2018 to cover widespread consumer law violations.

The Consumer Financial Protection Bureau on Tuesday ordered Wells to repay $2 billion to consumers and enacted a $1.7 billion penalty against the bank. The bureau spelled out a laundry list of consumer financial law violations, from illegal fees and interest on auto loans and mortgages, as well as incorrectly applied overdraft fees against savings and checking accounts.The bureau says the bad behavior by the bank impacted more than 16 million customers.

Wells Fargo has been repeatedly sanctioned by U.S. regulators for violations of consumer protections law going back to 2016, when Wells employees were found to have opened millions of accounts illegally in order to meet unrealistic sales goals. Since then, Wells has spent its time saying it’s cleaning up its act, only to be repeatedly fined for additional violations of consumer protection law.
The bank remains under a Federal Reserve order forbidding it from growing any larger until the Fed deems that its corporate culture problems are resolved. That order, originally enacted in 2018, was expected to last only a year or two.

In a statement, CEO Charles Scharf said the agreement with the CFPB is part of the effort to “transform operating practices at Wells Fargo and to put these issues behind us.”

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Today’s Top Stories

Business + Economy

A customer pumps gas at an Exxon gas station, Tuesday, May 10, 2022, in Miami. U.S consumers have s...
Adam Small

Utah gas prices spike, Governor blames regional supply

Gas prices continue to go up around the country but the prices in Utah tend to be higher that than national average. Gov, Cox addressed the surge earlier this week. Utah is running nearly 25 cents higher than national.
12 hours ago
After years of Provo, Utah, residents driving to Orem to shop at a large Target, their dream of hav...
Cassidy Wixom

Full-sized Target coming to former Dillard’s at Provo’s Towne Centre

Real estate firm Brixton Capital announced Monday that a new Target will occupy the former Dillard's building at Provo Towne Centre.
12 hours ago
quit their jobs...
PAUL WISEMAN AP Economics Writer

US added a strong 517,000 jobs in January despite Fed hikes

The Fed is aiming to achieve a "soft landing" — a pullback in the economy that is enough to tame high inflation without triggering recession.
5 days ago
Multiple dollar bills are pictured, social security will see a bump...
Mark Jones

Eyeing retirement: How much money is enough after you leave a job?

How do you know when it's time to leave a job or if you'll have enough for retirement? Dave and Dujanovic talk to a financial planner about this important question.
6 days ago
interest rate...
Curt Gresseth

Interest rate ticks up. Time to tame your debt.

The chief financial analyst for Bankrate.com joins the show to talk about the rising interest rate and how you can get out from under the debt you have accumulated.
6 days ago
The main reason small businesses fail in America is that the business owner doesn't have access to ...
Simone Seikaly

Lack of access stands between Black-owned businesses and success

But lack of access to money isn't the only thing that hinders Black-owned business in Utah and across the nation.
7 days ago

Sponsored Articles

Skier being towed by a rider on a horse. Skijoring....
Bear Lake Convention and Visitors Bureau

Looking for a New Winter Activity? Try Skijoring in Bear Lake

This article about skijoring is sponsored by the Bear Lake Convention & Visitors Bureau. Participate in Skijoring the Bear on February 20th, 2023.  What is skijoring? Skijoring is when someone on skis is pulled by a horse, dog, animal, or motor vehicle. The driver leads the skiers through an obstacle course over jumps, hoops, and […]
Banner with Cervical Cancer Awareness Realistic Ribbon...
Intermountain Health

Five Common Causes of Cervical Cancer – and What You Can Do to Lower Your Risk

January is National Cervical Cancer Awareness month and cancer experts at Intermountain Health are working to educate women about cervical cancer, the tests that can warn women about potential cancer, and the importance of vaccination.
Kid holding a cisco fish at winterfest...
Bear Lake Convention and Visitors Bureau

Get Ready for Fun at the 2023 Bear Lake Monster Winterfest

The Bear Lake Monster Winterfest is an annual weekend event jam-packed full of fun activities the whole family can enjoy. This year the event will be held from January 27-29 at the Utah Bear Lake State Park Marina and Sunrise Resort and Event Center in Garden City, Utah. 
happy friends with sparklers at christmas dinner...
Macey's

15 Easy Christmas Dinner Ideas

We’ve scoured the web for you and narrowed down a few of our favorite Christmas dinner ideas to make your planning easy. Choose from the dishes we’ve highlighted to plan your meal or start brainstorming your own meal plan a couple of weeks before to make sure you have time to shop and prepare.
Spicy Homemade Loaded Taters Tots...
Macey's

5 Game Day Snacks for the Whole Family (with recipes!)

Try these game day snacks to make watching football at home with your family feel like a special occasion. 
Happy joyful smiling casual satisfied woman learning and communicates in sign language online using...
Sorenson

The Best Tools for Deaf and Hard-of-Hearing Workplace Success

Here are some of the best resources to make your workplace work better for Deaf and hard-of-hearing employees.
Wells Fargo to pay $3.7B over consumer loan violations