The Consumer Financial Protection Bureau is levying a $1 billion fine against Wells Fargo as punishment for the banking giant’s actions in its mortgage and auto loan businesses. Spencer Platt/Getty Images hide caption
The Consumer Financial Protection Bureau is levying a $1 billion fine against Wells Fargo as punishment for the banking giant’s actions in its mortgage and auto loan businesses.
The Consumer Financial Protection Bureau is levying a $1 billion fine against Wells Fargo – a record for the agency – as punishment for the banking giant’s actions in its mortgage and auto loan businesses.
Wells Fargo’s “conduct caused and was likely to cause substantial injury to consumers,” the agency said in its filings about the bank.
Wells Fargo broke the law by charging some consumers too much over mortgage interest rate-lock extensions and by running a mandatory insurance program that added insurance costs and fees into some borrowers’ auto loans, the CFPB said.
Fed Slaps Unusual Penalty On Wells Fargo Following ‘Widespread Consumer Abuses’
The CFPB said Friday that the penalty is part of a settlement with Wells Fargo, which has pledged to repair the financial harm to consumers.
Because of the penalties, Wells Fargo says, it is adjusting its preliminary financial results for the first quarter of 2018, shifting $800 million in its balance sheet – and dropping its net income for the quarter to $4.7 billion. Læs videre “Wells Fargo Hit With $1 Billion In Fines Over Home And Auto Loan Abuses”