Wells Fargo to pay $3.7 billion for mistreating customers

wells fargo and companyResolved various allegations of customer mistreatment by agreeing to a $3.7 billion settlement with the Consumer Financial Protection Agency, including the largest $1.7 billion fine in CFPB history.

In a statement Tuesday, the CFPB said the deal included more than $2 billion in “consumer relief.” auto loanMortgage, Savings Account.

“Wells Fargo’s recurring cycle of law violations has damaged millions of American families,” CFPB Director Rohit Chopra said in a statement. “The CFPB is ordering Wells Fargo to refund billions of dollars to consumers nationwide. This is an important first step towards accountability and long-term reform for this repeat offender .”

Under CEO Charlie Scharf, Wells Fargo has been trying to resolve a string of scandals that began with revelations in 2016 that the bank had opened millions of fake accounts. has surfaced, resulting in the dismissal of two CEOs and the imposition of a number of costly penalties, including a decision by the Federal Reserve to cap the company’s assets.

The bank secured $2 billion in the third quarter to cover a variety of regulatory and legal matters, including making harmed customers permanent. Scharf warned in October that the accusations were “not over”.