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Wells Fargo to pay $1B penalty for consumer law violations

April 20, 2018

Wells Fargo has agreed to pay a $1 billion penalty for alleged violations of the Consumer Financial Protection Act.

The Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency announced the penalty Friday, report the Wall Street Journal, the National Law Journal and Bloomberg News. The New York Times and Washington Post reported on the expected fine on Thursday. Press releases are here and here, and the consent orders are here and here.

The fine was imposed for forcing customers with auto loans to buy insurance they didn’t need and for failing to follow the process it explained to customers concerning payments to lock in mortgage interest rates.

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