Millions of Wells Fargo customers to pay $3.7 billion for ‘illegal practices’, NBC Chicago reports


If you have one of three types of accounts at Wells Fargo, you may be eligible for a payout as part of a $3.7 billion settlement reached by the bank after a consumer protection watchdog found Wells Fargo violated federal consumer protection laws and processing practices. bank accounts, home loans, etc.

According to a January 17, 2023, blog post from the Consumer Financial Protection Bureau, the settlement with Wells Fargo was reached after the bureau found that more than 16 million Wells Fargo accounts were subject to the bank’s “illegal practices, including improper payments, improper garnishments, fees.” and interest payments. »

According to the Post, the settlement totals $3.7 billion, with $1.7 billion of the fine going to a victim relief fund.

According to the CFPB, one in three American households is a Wells Fargo customer and is influenced by its business practices and “corporate culture.” Specifically, Wells Fargo customers who had a car loan, mortgage or bank account between 2011 and 2022 were affected and may be eligible for a refund.

How the bureau affects the accounts, how many customers can see from the settlement, etc.

Affects customers with three account types

According to the CFPB, consumers who had any of the following accounts between 2011 and 2022 were affected. Here’s a rundown of how and where the bureau affected each account.

Wells Fargo auto loan customers

  • Auto loan payments were incorrectly applied to certain account balances, leading to late fees, unwarranted and improperly processed chargebacks, and high interest rates.
  • Wells Fargo failed to pay properly if borrowers who prepaid GAP coverage terminated their loans early.

Wells Fargo Mortgage borrowers

  • Some borrowers have been unfairly denied when they applied for a loan modification to avoid foreclosure.
  • Some borrowers were incorrectly charged fees or other costs
  • Wells Fargo falsely reported the deaths of some customers, filed “thousands of wrongful foreclosure lawsuits,” overcharged attorneys’ fees, and led to wrongfully dismissed claims.

Wells Fargo Bank account holders

  • In some cases, customers were charged unexpected overdraft fees for debit purchases and ATM withdrawals, even though they had sufficient funds in their accounts at the time.
  • Some customers were charged incorrect and incorrect monthly payments
  • Some customers’ money was unfairly “frozen” for weeks when Wells Fargo suspected deposit fraud.

How much can I get?

According to the CFPB, “fee amounts vary.” In addition, it is said that the settlement bank “must have a plan for each breach of order.”

According to the office, at least $4,000 can be refunded to those who repossess vehicles. The settlement also says Wells Fargo must pay $77.2 million to about 3,200 customers who “had difficulty working with the company to modify their loan payments to avoid foreclosures.”

According to a CNBC report, damages to customers with Wells Fargo bank accounts averaged nearly $100 per claim, and mortgage holders who failed to modify their mortgages to avoid foreclosure received an average of $24,215 per claim.

How do I know if I owe money?

The CFPB says Wells Fargo has a duty to notify those entitled to the money, and customers are not required to take any action to receive payment. The office also says it will “monitor” the bank’s compensation to customers.

“If you believe you are entitled to a payment and have not yet received it, please first contact Wells Fargo at 844-484-5089, Monday through Friday, 9:00 a.m. to 6:00 p.m. ET,” the statement said.

If calling Wells Fargo doesn’t resolve the issue, customers can contact the office by submitting a complaint online.

When will the payments be distributed?

Some consumers received their payments, the CFPB said.

“We have been actively contacting many customers who may have been impacted by billing issues, and those efforts are ongoing,” a Wells Fargo spokesperson told CNBC Make It.

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