Making Them Pay: Wells Fargo to Pay Billions to Harmed Consumers

Consumer Bureau notes the bank mismanaged mortgage and auto loans and engaged in illegal activity on deposit accounts

Wells Fargo will refund billions of dollars to consumers as well as pay a hefty fine as a result of repeated illegal activity related to the big bank’s handling of consumer accounts, including mortgages, auto loans, and deposit accounts.

The Consumer Financial Protection Bureau (CFPB) made the announcement today and noted that the fine assessed ($1.7 billion) is a result of Wells Fargo’s unwillingness to take corrective action after years of harms to consumers.

“Wells Fargo’s rinse-repeat cycle of violating the law has harmed millions of American families,” said CFPB Director Rohit Chopra. “The CFPB is ordering Wells Fargo to refund billions of dollars to consumers across the country. This is an important initial step for accountability and long-term reform of this repeat offender.”

The CFPB noted that the misconduct by Wells Fargo impacted some 16 million consumers over a period of years.

Consumers were illegally assessed fees and interest charges on auto and mortgage loans, had their cars wrongly repossessed, and had payments to auto and…