Friday, September 9, 2016
Wells Fargo will pay a $185 million settlement in fraud case
Wells Fargo on Thursday reached a settlement with the Los Angeles prosecutor and federal regulators who accused the lender of pushing customers into multiple, fee-generating accounts that they never requested.
Wells Fargo, the largest U.S. bank by market cap, will pay $185 million in fines and penalties plus restitution to customers, according to a statement from the Consumer Financial Protection Bureau.
The Office of the Comptroller of the Currency and Los Angeles prosecutor's office were also parties to the settlement.
In a complaint filed in May 2015, California prosecutors alleged that Wells Fargo for years pushed customers into costly financial products that they did not need or even request.
The bank opened more than 2 million deposit and credit card accounts that may not have been authorized, according to the CFPB.