In 2022, Wells Fargo reached a settlement agreement with the Consumer Financial Protection Bureau (CFPB) over allegations of improper practices in its auto lending and mortgage businesses. The settlement amounted to $1.25 billion, which is the largest in CFPB history. The allegations against Wells Fargo were brought on by the CFPB, which accused the bank of engaging in unfair and deceptive practices in its auto lending and mortgage businesses. Specifically, the CFPB alleged that Wells Fargo had charged borrowers for unnecessary insurance, charged improper overdraft fees, and engaged in other deceptive practices that harmed consumers. As part of the settlement agreement, Wells Fargo agreed to pay $1 billion in restitution to affected borrowers, as well as a $250 million civil penalty to the CFPB. In addition, the bank agreed to make changes to its auto lending and mortgage businesses to prevent future violations of consumer protection laws.
Wells Fargo’s Improper Actions
Wells Fargo is one of the nation’s largest banks serving households and businesses across the country. It offers a variety of consumer financial services including loans, checking and savings accounts, and online banking services. According to the CFPB, their findings found that Wells Fargo harmed millions of consumers over several years by:
- Unlawfully repossessing vehicles and bungling borrower accounts
- Improperly denying mortgage modifications
- Illegally charging surprise overdraft fees
- Unlawfully freezing consumer accounts and misrepresenting fee waivers.
The settlement agreement was a significant event for both Wells Fargo and the CFPB. For Wells Fargo, the settlement represented a major financial hit, as the bank had already been dealing with several legal and regulatory challenges in the wake of the 2016 fake accounts scandal.
Wells Fargo Illegally Charged Surprise Overdraft Fees
For years, Wells Fargo allegedly unfairly charged surprise overdraft fees that often gouged many of their customers. Lawsuits allege these fees were charged even though consumers have enough money in their account to cover the transaction. However, Wells Fargo allegedly took millions of dollars from the consumers who needed it the most. As a result of Wells Fargo’s actions, the CFPB has ordered them to pay $205 million for their illegal surprise overdraft fees. Wells Fargo was also ordered to stop charging surprise overdraft fees by the CFPB as well.
McCune Law Group Holding Wells Fargo Accountable
For years, Wells Fargo has been one of the most successful banking institutions in the United States. However, in a $203 million verdict against Wells Fargo arising from their overdraft practices, the Judge labeled their overdraft practices as driven by gouging and profiteering. McCune Law Group believes that Wells Fargo’s ongoing overdraft practices continue to be driven by gouging and profiteering off customers. This is why McCune Law Group is accepting arbitration clients who are current Wells Fargo customers and have been unfairly charged overdraft fees by Wells Fargo. Every year, banks cost consumers billions in overdraft fees, thanks to allegedly unscrupulous and predatory policies. To learn more about our arbitration against Wells Fargo, visit FightOverDraftFees.com.
To learn more about our action against Wells Fargo, contact McCune Law Group by completing the form or calling (909) 345-8110 today for a free consultation!