The Consumer Finance Protection Bureau levied a $1.7 billion civil penalty against Wells Fargo Bank on Tuesday for mismanagement that affected over 16 million accounts.
The bank was also ordered to pay more than $2 billion to compensate consumers for charging illegal fees and interest on auto loans, imposing surprise overdraft fees, and other consumer protection violations. It is the bureau’s largest civil penalty ever leveled against a bank, and Wells Fargo’s largest fine ever.
Bureau Director Rohit Chopra said additional action may be taken against the bank as officials continue to evaluate the organization’s operations and systems.
What other penalties has Wells Fargo faced? A 2016 investigation revealed that employees opened millions of accounts illegally to meet sales goals, a finding that led to numerous regulatory probes and hearings.
The Federal Reserve imposed a $1.95 trillion asset cap on the bank in 2018 after it paid a $1 billion penalty for consumer law violations. The cap will remain in place until the government determines that the bank has resolved operational issues.
This story originally appeared in WORLD. © 2022, reprinted with permission. All rights reserved.