Reports: $1B Fine for Wells Fargo for Illegal Sales
U.S. news reports say Wells Fargo will be fined as much as $1 billion for illegally selling customers car insurance policies they did not want or need, and for charging unnecessary fees in connection with mortgages.
This would be the largest fine ever imposed by federal bank regulators and the Consumer Financial Protection Bureau.
The fine is part of a settlement regulators negotiated with the bank.
Wells Fargo and federal officials have not commented on the reports.
The San Francisco-based lender admitted selling the unwanted insurance policies to hundreds of thousands of car loan customers. In many cases, the borrowers could not afford both the insurance and car payments and their cars were repossessed.
Many U.S. banks have enjoyed looser federal regulations under President Donald Trump’s pro-business administration.
But Trump denied reports that Wells Fargo would not be punished, tweeting in December that fines and penalties against the bank would, if anything, be substantially increased.
“I will cut regs but make penalties severe when caught cheating,” he wrote.
Wells Fargo previously paid a $185 million fine for opening bank and credit card accounts in its customers’ names without telling them.