CFPB Seeking More Than $1 Billion in Fines from Wells Fargo
The Client Monetary Safety Bureau (CFPB) will demand that Wells Fargo pay greater than $1 billion in fines for alleged mistreatment of its prospects, based on a Bloomberg report. Neither the federal company nor the monetary establishment has confirmed the settlement, and sources near the matter say that it seemingly will not be prepared this month.
Key Takeaways
- The CFPB is pressuring Wells Fargo to pay greater than $1 billion in a settlement over the financial institution’s alleged mistreatment of auto lending, mortgage lending and deposit prospects.
- The settlement could be a report for the federal company, shattering the $1 billion it fined Wells Fargo in 2018.
- The company and financial institution are nonetheless in discussions, and the settlement will not be but imminent.
Regulatory Strife Continues for Embattled Wells Fargo
Wells Fargo has been in sizzling water with the regulators for a number of years now. In 2018, the CFPB fined the financial institution $1 billion over misconduct in its auto and mortgage lending divisions, although the federal company gave Wells Fargo a $500 million credit score for its coinciding settlement with the Workplace of the Comptroller of the Foreign money.
In 2020, the financial institution agreed to pay $3 billion in a settlement with the U.S. Division of Justice over its gross sales practices, which concerned opening tens of millions of accounts with out its prospects’ permission.
Now, sources near the matter say that the CFPB is pressuring the financial institution to pay greater than $1 billion in fines over repeat offenses in auto lending, mortgage lending, and client deposit accounts. In a current submitting, Wells Fargo mentioned it put aside $2 billion within the third quarter to cowl numerous regulatory and authorized points, together with buyer reparations.
However talks between the CFPB and the financial institution are nonetheless ongoing, based on the Bloomberg report, and there seemingly will not be an accord between the 2 this month.
