The Consumer Financial Protection Bureau (CFPB) has ordered Wells Fargo to pay $3.7 billion for widespread mismanagement of auto loans, mortgages and deposit accounts. $1.7 billion will be paid as a fine to CFPB’s Civil Penalty Fund and an additional $2 billion will be paid to 16 million affected consumer accounts.
CFPB found that Wells Fargo repeatedly misapplied loan payments, wrongfully foreclosed on homes, illegally repossessed vehicles, incorrectly assessed fees and interest, charged surprise overdraft fees. The $2 billion paid to affected customers is broken down as follows:
- $1.3+ billion for affected auto lending accounts.
- $500+ million for affected deposit accounts, including $205 million for illegal surprise overdraft fees.
- Almost $200 million for affected mortgage servicing accounts.
CFPB has previously fined Wells Fargo $185 for illegally opening accounts (in addition to a $142 million class action settlement).
