Your Evening Briefing: ‘Repeat Offender’ Wells Fargo Hit With Record Fine

Wells Fargo reached a $3.7 billion settlement with US regulators—including a record $1.7 billion fine—over allegations it mistreated millions of customers. For years, the San Francisco-based bank has illegally repossessed vehicles, bungled record-keeping on payments and improperly charged fees and interest, the government alleged. “Wells Fargo’s rinse-repeat cycle of violating the law has harmed millions of American families,” Consumer Financial Protection Bureau Director Rohit Chopra said. “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.”

Wells Fargo has been under pressure to resolve a raft of costly scandals that emerged in 2016 with revelations that it opened millions of bogus accounts, ultimately leading the Federal Reserve’s to cap its assets. In today’s settlement, the government alleged the bank (which didn’t admit to the allegations as part of the deal) improperly denied mortgage modifications, with some customers losing their homes, and in more than 1 million instances unlawfully froze consumer accounts. And this accord is unlikely to be the last. Chopra warned Wells Fargo’s efforts to boost profit through product launches and other growth initiatives has delayed key reforms—more restrictions may be coming.