CFPB enforcement action against Wells Fargo orders billions in redress and civil money penalty

Happy Wednesday, compliance pals!  I just returned from a long-weekend conference in New Orleans, and I feel a bit carb-loaded from all of the amazing food, but especially the beignets.

Now that I’m back in my (home-sweet-home) office and all of the holidays and travel are over, it’s time to get back in the swing of things, starting with today’s post about a recent Consumer Financial Protection Bureau (CFPB/bureau) enforcement action against Wells Fargo.

In late December 2022, the CFPB announced a consent order against Wells Fargo (Wells), in which the bank is required to pay more than $2 Billion (yes, with a “B”) in redress to its customers, and a $1.7 Billion civil money penalty for violations across its auto lending, mortgage servicing, and deposit account product lines.

The bureau considers Wells a “repeat offender,” and CFPB Director Chopra is quoted in the press release, stating that “Wells Fargo’s rinse-repeat cycle of violating the law has harmed millions of American families.  The CFPB is ordering Wells Fargo to refund billions of dollars to consumers across the country.  This is an important step for accountability and long-term reform of this repeat offender.” The bureau’s website lists a number of enforcement actions and consent orders related to the bank dating back to 2015, including the widely publicized 2016 $100 million fine for opening unauthorized accounts in customers’ names.

 

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