What do you know about Wells Fargo Bank settlement details? It is no longer a secret that millions of Wells Fargo customers are in line to receive damage payments stemming from a parade of misdeeds the bank has committed in recent years.
As a federal watchdog, the Consumer Financial Protection Bureau (CFPB) leveled a $3.7 billion fine on Wells Fargo in December 2022, with consumers getting $2 billion of it.
“Wells Fargo’s repeat violation of the law has cost millions of American families their homes while the bank was reaping payout bonanzas from repeat-revoked bonuses,” CFPB Director Rohit Chopra said at the time.
“This is a critical first step toward accountability and long overdue reforms for this repeat offender.” CFPB officials have finally taken the time to explain how victims of Wells Fargo’s consumer abuse in the future will have the opportunity to make sure they are not left out in the cold when there’s settlement money to hand out.
How does Wells Fargo Operate?
This is what Wells Fargo customers need to know about the landmark ruling, including who qualifies for compensation and how to claim the money they are owed.
On Dec. 20, 2022, Wells Fargo was found to have improperly charged customers fees and interest on car and home loans, misapplied payments on loans, and wrongfully repossessed consumers’ vehicles.
The bank also surprised its customers with illegal surprise overdraft fees and added on other improper charges to checking and savings accounts.
This isn’t the first time that the CFPB has tagged Wells Fargo for bad behavior. In previous years, the federal watchdog punished the banking behemoth for charging mortgage kickbacks, botching student loans, creating fake accounts, and mismanaging auto loans.
Decision And Compromise At Last
“We and our regulators have focused on a series of unacceptable sales practices that have been part of our business for far too long, and we are doing all we can to assist customers.
This will also help fix these issues as part of our commitment to building a better, stronger Wells Fargo,” said Charlie Scharf, the chief executive of Wells Fargo, of the watchdog’s enforcement action.
“This wide-ranging settlement is the latest in a series of important steps that we are taking to rebuild trust and to make things right with our customers and others,” Charles W. Scharf, the chief executive of Wells Fargo, said in a statement.
Our primary focus is on further building out a risk and control infrastructure that is sized and resourced to the needs of Wells Fargo and running our company in a more risk-managed way, regardless of the environment.”
Who is Affected?
Wells Fargo’s tarnished business practices run from the bank’s heart to a significant cross-section of the public: One out of every three American households is a customer.
For Wells Fargo customers, you should know what damage you’ve sustained from this, how the current payments will be distributed, and be aware of potential problems in the future.
The next section will explain how you were impacted and the type of action that you should take, as well as the amount you should get in compensation. More than 16 million accounts at the bank were affected in total.
Auto Loan Customers
Some borrowers’ loan payments weren’t being credited accurately toward their loan balances. That, in turn, led to higher interest charges, late fees, and wrongful repossessions.
And customers who bought GAP coverage in some cases were not refunded the money they were due if they paid off a loan early. More than 11 million accounts were affected by this scam, which has left account holders up to $1.3 billion out of pocket.
Mortgage Loan Borrowers
Wells Fargo unfairly denied some borrowers the ability to modify their loans and avoid foreclosure. The bank also inaccurately reported some of its customers to be deceased.
Now these inflated attorney fees prevented some applicants from getting loans and resulted in thousands of wrongful foreclosures. Bank customers were affected by mortgage errors that resulted in about $200 million in compensation.
Wells Fargo Deposit Accounts
Extra overdraft, withdrawal, and monthly fees were tacked on to some Wells Fargo deposit accounts. On other occasions, the bank froze customers’ accounts for weeks without cause and claimed it was trying to prevent unscrupulous deposits.
More than 5m accounts were affected by the wrongdoing, which it estimates has led to more than half a billion dollars in compensation.
How to Recover Your Share of Settlement Funds
“You may be eligible — as soon as you realize something has taken place,” says Davi, who puts it at eight months after any one of the abuse and neglect instances described above.
“If you think you’ve experienced abuse or neglect like the ones above, Wells Fargo is required by law to get in touch with you about compensation.” The victims won’t need to do anything in order to receive what they’re owed, and some have already gotten their payment.
If, for some reason, you think you are entitled to some money but have not been contacted by the bank, you can call Wells Fargo at 844-484-5089 from 9 a.m. to 6 p.m. Eastern time, Monday through Friday. Those not helped by the bank can file a complaint with the CFPB.
Last Words
Monetary damage awards will also depend on the type of violation at issue. For instance, anyone who had their car illegally repossessed is eligible for a minimum of $4,000 reimbursement for any costs that came with it.
Criminals may use this opportunity to scam Wells Fargo victims, the CFPB adds. If someone contacts you and says that they can help get your money or has to do an electronic transfer to get it to you, know that it is fraudulent.
If scammers reach out to you, contact the CFPB immediately: (855) 411-2372, 8 a.m. to 8 p.m. ET Monday through Friday.
