The Consumer Financial Protection Bureau (CFPB) will demand that Wells Fargo pay more than $1 billion in fines for alleged mistreatment of its customers, according to a Bloomberg report. Neither the federal agency nor the financial institution has confirmed the settlement, and sources close to the matter say that it likely won’t be ready this month.
The CFPB is pressuring Wells Fargo to pay more than $1 billion in a settlement over the bank’s alleged mistreatment of auto lending, mortgage lending and deposit customers.
The settlement would be a record for the federal agency, shattering the $1 billion it fined Wells Fargo in 2018.
The agency and bank are still in discussions, and the settlement is not yet imminent.
Regulatory Strife Continues for Embattled Wells Fargo
Wells Fargo has been in hot water with the regulators for several years now. In 2018, the CFPB fined the bank $1 billion over misconduct in its auto and mortgage lending divisions, though the federal agency gave Wells Fargo a $500 million credit for its coinciding settlement with the Office of the Comptroller of the Currency.
In 2020, the bank agreed to pay $3 billion in a settlement with the U.S. Department of Justice over its sales practices, which involved opening millions of accounts without its customers’ permission.
Now, sources close to the matter say that the CFPB is pressuring the bank to pay more than $1 billion in fines over repeat offenses in auto lending, mortgage lending, and consumer deposit accounts. In a recent filing, Wells Fargo said it set aside $2 billion in the third quarter to cover various regulatory and legal issues, including customer reparations.
But talks between the CFPB and the bank are still ongoing, according to the Bloomberg report, and there likely won’t be an accord between the two this month.