MS to receive $2.5 million in Wells Fargo settlement

Wells Fargo to pay states $575M for phony accounts, deception scandals

Wells Fargo to pay states $575M for phony accounts, deception scandals

Investigators and state Attorneys General allege that, between 2002 and 2016, Wells Fargo implemented a program which paid bonuses to Wells Fargo Community Bank employees who sold financial products to customers. Under the federal settlements and the settlement of a class action lawsuit, Wells Fargo must also pay about $600 million in restitution to injured consumers.

The attorney general's office stated that Wells Fargo entered into the settlement over alleged unfair and deceptive trade practices.

On Friday, it took a step to put one batch of accusations behind it.

Opening millions of unauthorized accounts and enrolling customers into online banking services without their knowledge or consent.

Wells Fargo customers who feel they've not received adequate restitution can request a review from a bank escalation team. The remediation will include payments to over 51,000 customers whose cars were repossessed.

"Wells Fargo's egregious behavior towards Arizona consumers was particularly offensive".

Wells Fargo has been ordered to set up a dedicated website and phone number by February 26, 2019, for its affected banking, insurance, auto loan and home mortgage customers to file claims for refunds in this settlement.

According to Wells Fargo's policy at the time, the Rate Lock Extension Fee was charged to customers if their home loan did not close during the rate lock period defined in the loan contract.

New Mexico wasn't the only state to accuse the banking giant of violations. "Fortunately, both federal and state authorities have interceded to remedy Wells Fargo's misconduct".

Wells Fargo had already been ordered to pay more than $1.2bn in penalties and faced stricter regulations. Additionally, under an order from the Federal Reserve, the bank is required to strengthen its corporate governance and controls, and is now restricted from exceeding its total asset size.

The $17 million Wells Fargo payout to New Jersey is the sixth highest amount recovered among all jurisdictions participating in the multi-state settlement.

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