Wells Fargo alleged to pay fines over $3.7 billion for misconduct and customers mistreatment.

The Consumer Financial Protection Bureau (CFPB) is calling on Fargo to pay fines for alleged mistreatment of its customers.

Well, Fargo, one of the largest Bank of America, has been in hot water for several years, but not everyone knows what the bank has been going through with regulatory strife.

Wells Fargo Bank of America was first fined $1 billion in 2018 for its auto and mortgage lending misconduct, and as that time the amount set a new record for the federal agency, Wells Fargo was fined $500 million for this misconduct to be settled in 2018.
Later in 2020, the bank came under pressure again and had to pay $3 billion in a settlement with the US Department of Justice for opening millions of accounts for its customers without their consent. However, on Tuesday, December 20, the CFPB issued a press release stating that the bank must pay more than $1 billion for repeated violations that occurred then in 2018 and a civil penalty of $1.7 billion that will go to the CFPB Penalty Fund. In addition, the bank must ensure that car loan borrowers are reimbursed for the additional costs incurred in previous loans.

That's not all, the CFPB went on to release the offense committed by Wells Fargo recently,
Violation such as;

• Tapping the borrower's account by using an incorrect automatic loan payment, which resulted in incorrectly charged fees and interest.

• Improper mortgage modification denials causing many customers to lose their homes.

• Unnecessary current account charges for payment card transactions and ATMs

All of these offenses were used against Wells Fargo and must pay fines for misconduct and improper treatment of customers. According to the Bloomberg report, negotiations are ongoing between the CFPB and Wells Fargo, and the settlement is unlikely to be finalized this month or soon. But Wells Fargo's press release confirmed that the bank had already agreed to pay the settlement soon but not this month. Wells Fargo said $2 billion will be available in the third quarter of 2023 to cover regulatory and legal issues with customer refunds.

Although Wells Fargo won't feel this on their account because they have a lot of fish in the sea and $3.7 billion will seem a bit little for the biggest bank. But if something like this happens again in the future, fines will follow again, and despite the huge sums the bank is now willing to pay to the federal agency. I can see that this is not the end of the fines, if care is not taken the federal agency will take Wells Fargo as a mall and pounce on their business to put money in their own pockets.

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